India's recent macroeconomic developments

We provide a brief overview of recent developments in the Indian macroeconomy, including aspects of the real economy, price developments, and monetary and fiscal policies.The picture that emerges is one of a rapidly growing economy, supported by strong domestic demand and credit flows.The economic boom has dragged the current account into deficit, while output growth has broadened to encompass the industrial sector.Fiscal deficit ratios have recently declined due to a rapid increase in the level of GDP, but public sector imbalances remain high, constraining necessary investments in health, education, physical infrastructure and overall poverty reduction. Keywords: India, economic growth, monetary policy, fiscal policy