Posted on June 24, 2013 by iMFdirect
By David Coady and Thomas Richardson
Many countries seek to protect poorer households by subsidizing the consumption of fuel products. However, recent IMF research shows that fuel subsidies are both inefficient and inequitable, including in India.
But what about India? Are fuel subsidies also anti-poor? Sadly, yes. A new IMF working paper shows that India’s fuel subsidies are both fiscally costly and socially regressive.
Filed under: Asia, Emerging Markets, Fiscal policy, growth, IMF, International Monetary Fund, Low-income countries | Tagged: energy subsidies, fuel subsidy spending, GDP, iMFdirect, India, research | Leave a Comment »
Posted on February 21, 2013 by iMFdirect
by Laura Papi and Rahul Anand*
So far 2013 has been a breath of fresh air in terms of economic news: financial markets have rallied and economic indicators have started to surprise on the upside. In India, the rupee has strengthened and the Bombay Stock Exchange index (Sensex) crossed the 20,000 mark for the first time in two years. Industrial production has started picking up.
So is India’s growth about to go back to 8-9 percent? The short answer is no. But we need to look back to understand why India’s growth has decelerated to a decade low and why the slump, which has hit investment particularly hard, has persisted for over a year. As structural problems are at the root of the slowdown, so structural reforms must be at the core of the solution.
Filed under: Economic Crisis, Emerging Markets, growth, IMF, International Monetary Fund | Tagged: cash transfers, economic growth, emerging markets, fiscal deficit, fuel subsidy spending, government deficits, IMF, iMFdirect, India, inflation, International Monetary Fund, investment, structural reforms | 1 Comment »