The coalition government under Sushil Koirala will remain in place in 2015-16. The January 2015 deadline for the promulgation of a new constitution is likely to be missed; the issue may remain unresolved in the forecast period.
The government will make greater attempts to spend its capital budget in order to develop infrastructure and support economic growth.
Consumer price inflation will remain over the government's 8% target at 8.3% in 2015. However, the easing pace of inflation in India will reduce imported inflation, allowing consumer prices to rise by only 7.9% in 2016.

Summary 7

Basic data 8

Political structure 9

Economic structure 10

Annual indicators 10

Quarterly indicators 11

Outlook for 2015-16 12

Political outlook 12

Economic policy outlook 13

Economic forecast 15

Recent analysis 17

Politics 17

Economy 19

International assumptions summary 15

Forecast summary 16

Consumer prices 11

Foreign reserves 11

Gross domestic product 16

Consumer price inflation 16

Summary 24

Basic data 25

Political structure 26

Economic structure 27

Annual indicators 27

Quarterly indicators 28

Outlook for 2015-16 29

Political outlook 29

Economic policy outlook 30

Economic forecast 32

Recent analysis 35

Politics 35

Economy 40

International assumptions summary 32

Forecast summary 34

Exchange rate 28

Foreign reserves 28

Gross domestic product 34

Consumer price inflation 34

Summary 46

Basic data 47

Political structure 48

Economic structure 49

Annual indicators 49

Quarterly indicators 50

Outlook for 2015-16 51

Political outlook 51

Economic policy outlook 52

Economic forecast 54

Recent analysis 57

Politics 57

Economy 58

International assumptions summary 54

Forecast summary 56

Consumer prices and money supply 50

Exchange rate 50

Gross domestic product 56

Consumer price inflation 56

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