Updated By: LatestGKGS Desk
International Monetary Fund IMF favor 3 pronged approach to structural reform, India
The International Monetary Fund (IMF) favor three-pronged approach to structural reform in India details
The International Monetary Fund (IMF) has suggested a three-pronged approach to structural reform in India.
The three-pronged approach that including...
1. Addressing the banking and corporate sector weaknesses, by hastening the resolution of non-performing loans, renew the capital buffers for the public sector bank and enhancing banks’ debt recovery mechanisms.
2. India should persist on with continued fiscal consolidation through revenue measures, along with the further decline in subsidies.
3. To continuing the strong momentum for structural transformation in addressing the infrastructure gaps, improving the efficiency of labor and product markets along with advancing agricultural reforms.
As well as three structure reforms, the International Monetary Fund (IMF), suggested reforming the market regulation to create a more favorable environment for employment and investment.
The International Monetary Fund (IMF), also emphasized on to cut down the number of labor laws which currently number around 250 at central and state level.
The International Monetary Fund (IMF)'s Regional economic outlook
India’s growth was sluggish in recent quarters due to the disruptions happened through demonetization move the looking place in November 2016 and the recent roll-out of the good and service Tax (GST).
However, the report also suggested that the growth in 2017 was revised downward to reflect the recent slowdown, but is likely to speed up in the medium term as these disruption fade.
