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India worked on fundamentals, but more structural reforms needed: IMF
Oct-18-2019

The International Monetary Fund’s (IMF’s) Managing Director Kristalina Georgieva said India has worked on the fundamentals of its economy, but there are problems, such as long-term drivers of growth, that need to be addressed. Georgieva said in the financial sector, especially non-banking institutions, there are steps taken now to consolidate banks. They ought to help resolve some of these issues.

She mentioned ‘in India, what is critically important is to continue with addressing the long-term drivers of growth. Investment in human capital in India is a top priority. It has to continue bringing women in the labour force. It is very important. India has very talented women, but they stay at home’.

Besides, she said there has been a very strong growth in India over the last years and the IMF is projecting reasonably strong growth for the country. However, she added ‘like the rest of the world, India is experiencing a slowdown. So slightly over six per cent is what we expect to see in 2019.’ The IMF had trimmed India's growth forecast by 90 basic points to 6.1%. This is second downward revision in seven months and in total 120 basis points reduction.

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