CHALLENGES OF SUSTAINING DYNAMISM IN THE CONTEXT OF GLOBAL FINANCIAL CRISIS
This year's Mid-Year Review of the Indian Economy is undertaken against the backdrop of the most serious financial crisis the world economy has faced since the Great Depression of the 1930s.
The author examines the outlook for 2008/09 and beyond for the Indian economy in the context of the deteriorating external environment. He also discusses important issues of quality of growth, policy challenges in respect of inflation and fiscal consolidation, trade and balance of payments, capital flows and their quality, among others, ending with policy lessons to moderate the impact of the crisis on the Indian economy and to turn the challenges into opportunities.
The author argues that the time has come for taking bold steps to revive the growth momentum. India should seize the moment before it is too late. It should deepen further its engagement with East Asian countries in view of their emergence as the growth locomotives and centres of gravity of the world economy, to build an Asian integrated market and community. There are real opportunities for India for financial cooperation with the Asian countries.
Dr Nagesh Kumar is Director-General of Research and Information System for Developing Countries, New Delhi.
A PhD in Economics from the Delhi School of Economics, Dr Kumar has been on the faculty of RIS since 1985. During 1993-98, Dr Kumar served on the faculty of the United Nations University-Institute for New Technologies (UNU/INTECH now UNU-MERIT), Maastricht, the Netherlands, and directed its research programme on Globalization, FDI and technology transfers in developing countries. He has also served as a consultant to the World Bank, Asian Development Bank, UNDP, UNCTAD, UNIDO, UN-ESCAP, ILO, the Commonwealth Secretariat, the Commission on Intellectual Property Rights, among other organizations.
Dr Kumar has been appointed by the Government of India as member of the board of directors of the Export-Import Bank of India. He also serves on the Governing Boards of the International Centre for Trade and Sustainable Development (ICTSD), Geneva; the South Asia Centre for Policy Studies (SACEPS), Kathmandu; and the Institute of Studies in Industrial Development, New Delhi, besides a number of government committees and expert groups.
He is the Recipient of the Exim Bank of India's first International Trade Research Award in 1989 and a GDN Medal for best research awarded by the World Bank and the Japanese Government in 2000.
List of Charts and Figures
List of Boxes and Tables
2. Deteriorating External Economic Environment
3. Long Term Trends in the Macroeconomic Performance of the Indian Economy: Outlook for 2008/09 and Beyond
4. Quality of Growth and the Role of Infrastructure Development
5. Prices and Fiscal Balance
6. Trade and Balance of Payments
7. Capital Flows and Their Impact
8. Policy Responses to Meet the Challenges
9. Comments on the Review by the Discussants