IMF flags decelerating pace of reforms in India
The headquarters of the International Monetary Fund (IMF) in Washington. Photo: Bloomberg
BEJING: Listing out as many as six core areas that need further reforms in India, IMF has warned that headwinds from weaknesses in the country’s corporate and bank balance sheets, decelerating pace of reforms and sluggish exports may weigh on its economic growth.
The International Monetary Fund (IMF), which recently lowered its GDP growth projection for India to 7.4% in the current fiscal, said the country’s “economy is on a recovery path, helped by lower oil prices, positive policy actions and improved confidence”.
“But headwinds from weaknesses in India’s corporate and bank balance sheets, a decelerating pace of reforms, and sluggish exports will weigh on growth,” the multilateral institution said in a ‘Note on Global Prospects and Policy Challenges’.
The note has been prepared for the two-day meeting, ending on Sunday, of the G20 finance ministers and Central Bank governors’ meetings being held in Chengdu, China.
IMF, which has also lowered its global economic growth forecast for 2016 and 2017 by a marginal 0.1% to 3.1 and 3.4% respectively, recommended six ‘reform priorities’ for India, which is higher than the same for several other emerging markets including China, Brazil and South Africa.