The State of the Indian Economy: The Budget and Beyond

Over the last couple of years, India’s economic growth rate has slowed. It remains one of the fastest-growing economies in the world, but the decline has caused concern within that country and outside of it. In the fall of 2012, the Indian government took measures to reverse the trend, but authorities acknowledge that much remains to be done. On February 28, P. Chidambaram, the Indian finance minister, will release the Union budget, which analysts will watch closely to determine the direction the government intends to take, especially with regard to economic reforms.

On March 4, the India Project at Brookings hosted a discussion of the state of the Indian economy, the highlights of the Indian budget, and prospects for further reforms and growth. Panelists also discussed the recently released International Monetary Fund annual staff report on India, which assesses Indian economic performance and lays out the risks and opportunities that lie ahead for the country. Panelists included Diane Farrell, executive vice president of the U.S.-India Business Council, Anne Krueger, professor of international economics at the School for Advanced International Studies, Johns Hopkins University, and Laura Papi, assistant director in the Asia and Pacific Department of the IMF. Brookings Senior Fellow Eswar Prasad, the New Century chair in International Trade and Economics, moderated the discussion.