Lima:
The International Monetary Fund on Saturday recommended India to launch the next phase of economic reforms and improve its business climate for achieving faster and more inclusive growth.
In India, while several policy actions have been taken
recently, further steps in relaxing longstanding supply bottlenecks, especially in the energy, mining, and power sectors, as well as labour and product market reforms, and improving the business climate are crucial to achieving faster and more inclusive growth, the IMF said.
In its Asia and Pacific Regional Economic Outlook Update released in Peru on the sidelines of the annual fall
meeting of the IMF and World Bank, the IMF has projected a slight drop in India’s growth rate from 7.5 per cent to 7.3
per cent in 2015 and maintained the same growth rate of 7.5 per cent for 2016 as it projected in this previous report in April.
It said with the revival of consumer and business sentiment, the incipient recovery of investment is expected to contribute more to growth going forward.
In India, the IMF said the growth recovery has continued, supported by a pickup in domestic demand, on the back of strengthening industrial production and fixed investment.
Lower global oil prices have also boosted economic activity in India and underpinned a further improvement in the current account and fiscal position and a sharp decline in inflation, it said.
