Front Matter Page
IMF Country Report No. 15/62
INDIA
SELECTED ISSUES
March 2015
This Selected Issues Paper on India was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed on January 29, 2015.
Copies of this report are available to the public from
International Monetary Fund • Publication Services
PO Box 92780 • Washington, D.C. 20090
Telephone: (202) 623-7430 • Fax: (202) 623-7201
E-mail: publications@imf.org Web: http://www.imf.org
Price: $18.00 per printed copy
International Monetary Fund
Washington, D.C.
©2015 International Monetary Fund
Front Matter Page
INDIA
SELECTED ISSUES
January 29, 2015
Approved By
Asia and Pacific Department
Prepared By Paul Cashin, Sonali Jain-Chandra, Volodymyr Tulin, Mehdi Raissi, Sonali Das, and Thomas Richardson (all APD), Peter Lindner (MCM), Naresh Kumar (AFR), and Era Dabla-Norris, Ran Bi, Filiz Unsal, and Eva Van Leemput (all SPR).
Contents
SUMMARY
SPILLOVERS FROM SURGES IN GLOBAL FINANCIAL MARKET VOLATILITY
References
FIGURES
1. Network of Global Portfolio Investment Liability (Debt and Equity) Exposures
2. Responses of Key Variables to Global Financial Market Volatility Shocks
INDIA’S FOOD INFLATION: CAUSES AND CONSEQUENCES
References
APPENDIX
1. India: Fitted Engel Curves for Key Food Expenditure Categories
EL NIÑO WEATHER SHOCKS AND THEIR IMPACT ON INDIA
References
FIGURES
2. El Niño Southern Oscillation (ENSO) Status
3. Global Climatological Effects of El Niño
MONETARY POLICY IN INDIA: TRANSMISSION TO BANK INTEREST RATES
References
TABLES
1. Descriptive Statistics
2. Speed of Adjustment: Number of Months Required to Complete 80% Pass-through of Repo Rate Increase
3. Bank Interest Rates and WACMR: Asymmetric SR VECM Results
A NEW FISCAL RULE FOR INDIA?
References
TABLES
1. Properties of Different Types of Fiscal Rules Against Key Objectives
PRICE AND INCOME ELASTICITY OF INDIAN EXPORTS—THE ROLE OF STRUCTURAL RIGIDITIES
References
EFFECTIVENESS OF EMERGING MARKET POLICY RESPONSES SINCE THE TAPER TALK
References
INDIA’S CORPORATE SECTOR: HEALTH AND PROFITABILITY
References
CORPORATE LEVERAGE AND INVESTMENT IN INDIA
References
FINANCIAL INCLUSION AND ACCESS IN INDIA: ANALYSIS USING A STRUCTURAL MODEL
References
BOX
1. India’s Efforts to Enhance Financial Inclusion
FIGURES
2. Effects of Reducing the Participation Cost
3. Effects of Relaxing Collateral Constraints
4. Effects of Increasing Intermediation Efficiency
5. Impact of Priority Sector Lending
TABLES
1. Comparative Statistics, 2005 versus 2009
INDIA’S PROGRESS ON ACHIEVING THE MILLENNIUM DEVELOPMENT GOALS
References
HOLDING UP HALF THE SKY: ANALYSIS OF FEMALE LABOR FORCE PARTICIPATION INDIA
References
TABLES
1. Determinants of Female Labor Force Participation
2. Formal and Informal Employment
3. Infrastructure and Social Spending