Washington: According to the International Monetary fund’s (IMF) India needs further economic reform to ensure sustainable and more inclusive growth. India’s concerted efforts to strengthen the business climate and encourage investment in the trade have helped attract more investment.
IMF chief GERRY RICE said on Thursday recent FDI announcements made by global giants like FACEBOOK and GOOGLE in INDIA. In recent weeks, several international companies have pledged USD 20 billion FDI in India, and whopping USD 40 billion this year so far.
Gerry Rice told reporters at a news conference in Washington that, “Concerted efforts have been made in recent years, in India, to strengthen the business climate and encourage investment in trade, and helped to attract investment and improve the current account financing mix and also help to contain external vulnerabilities”.
RICE said that “Nonetheless, further economic reforms, including labor, product mixed land, and others, and additional infrastructure investment are necessary, in our view, to attract even more investment, and to ensure sustainable and more inclusive growth in India” in response to the question.
MR Rice also said the new bankruptcy code, the National Goods and Services Tax, has helped to gain in India’s doing business ranking, moving up rapidly in the World Bank’s Ease of Doing Business index, up to 63 in 2020, from 100 in 2018.
IMF in its update to the World Economic Outlook projected India’s growth rate at -4.5 percent, and then six percent recovery, for the fiscal year 2020-21 and fiscal year 2020-22, respectively.
Referring to the coronavirus pandemic Mr. Rice said, “despite a gradual recovery in activities and a solid agricultural performance, the main downside risk is, the continued spread of the COVID-19 pandemic”.
“Our projection for the fiscal year 2020-2021 was revised down, as was the case for most countries driven by the impact of the pandemic,” said IMF chief spokesperson.
Mr. Rice said, the case is not just in India, but in many countries, additional lockdowns, and concerns about the virus could also dampen consumer confidence and delay the economic recovery.
Article written by SOMANATH SAHU
Image Source: Google