India
Pages | 55 |
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India's economy is rebounding strongly, providing a golden opportunity to tackle fiscal challenges decisively.
Page 55
Growth was strong in fiscal year 2003/04 (April-March) after recent lackluster performance and declining investment.
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India's economic ties with the rest of the world have strengthened, with services exports-largely information technology-also leading the way.
[ SEE THE GRAPHIC AT THE ATTACHED PDF ]
Current account surpluses and strong capital inflows have boosted foreign reserves, reducing external vulnerability.
[ SEE THE GRAPHIC AT THE ATTACHED PDF ]
While the fiscal situation likely improved in 2003/04, it still poses serious challenges and risks, with deficits diverting savings from more productive uses.
[ SEE THE GRAPHIC AT THE ATTACHED PDF ]
The recovery was strongest in agriculture, following a severe drought in 2002/03, but services are increasingly driving India's economy.
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Exports have benefited from competitiveness gains in the past three years despite the recent rupee strengthening...
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