If policies managed well, India can become powerhouse economy: IMF
India can become a powerhouse economy if policies are managed well and reforms are supportive of inclusive growth, said David Lipton, First Deputy Managing director of International Monetary Fund. He also expressed hope that India's growth will be reflected in poverty reduction statistics and eventually in a measurement of metrics of inclusion. But, there's more to be done, he said.
Reforms to make banking system more competitive
"There are further reforms both in terms of consolidating the budget situation to ensure that there's never an incident of doubt about fiscal finances in terms of making the banking system more competitive and dealing with the legacy problems of NPAs," he said.
Important job is to change the governance and competitiveness
An important job was not just to recapitalize, but to change governance and competitiveness so banks serve as a positive force by allocating credit well and being a driving force in economy, he said. IMF MD Christine Lagarde recently said that she doesn't expect any major economic reforms during election year. On that, Lipton said, "It's always difficult to make policy during election-years."
