IMF has three advices for India to sustain high growth
The International Monetary Fund (IMF) said today that to sustain the high growth rate India has achieved, it should carry out banking sector reforms, continue with fiscal consolidation, simplify and streamline good and services tax (GST), and renew impetus on reforms. India's growth accelerated to 7.7% in the fourth quarter of Financial Year (FY) 2017-18. That was up from 7% in the previous quarter.
IMF Communication Director says growth expected to continue in FY2018-19
"We expect the recovery to continue in FY 2018-19. Growth is projected at 7.4% in FY 2018-19 and actually 7.8% in FY 19-20, respectively," IMF Communications Director Gerry Rice said.
Rice explains the three steps to sustain India's high growth
Rice suggested three steps for India to sustain the high growth rate. "One, to enhance the credit provision efficiency, by accelerating bank cleanup and enhancing the government of public sector banks," he said. The second was to continue fiscal-consolidation and to lower elevated public debt-levels by simplifying the GST structure. He then suggested renewing impetus to reforms of key-markets over the medium-term.
Renewing impetus on reforms will help improving competitiveness: Rice
"Over the medium-term, renew impetus to reforms of key markets, for example, labor and land, as well as improving the overall business climate would be crucial to improving competitiveness and again, maintaining that very high level of growth in India," Rice said.
IMF Board to discuss simplifying GST in upcoming India meeting
The IMF Board is tentatively scheduled to meet on July 18 for its annual India meeting. "We will be releasing the staff report in relation to that Board meeting and it will have detail about GST," Rice said when asked about simplifying and streamlining GST structure. The IMF is scheduled to release on July 16 the update on World Economic Outlook.
