According to the International Monetary Fund (IMF), India is one of the fastest growing large economies in the world. The IMF noted that India has implemented many new reforms in its economy over the last five years. However, the report also noted that India has to a lot more if it wants to sustain higher economic growth in the future.
This was stated by Gerry Rice, IMF’s Communications Director, while responding to a question during the fortnightly news conference. He stated that India has been one of the fastest growing economies in the world with an average growth of around 7% over the last five years. He added that important economic reforms are being implemented in the country over the last few years. However, additional reforms are required to tackle the demographic dividend opportunity that India has.
IMF would reveal further details about the economic conditions of India in its World Economic Outlook (WEO) report, which is all set to be released next month. IMF is all set to release this report before it meets the World Bank in a scheduled meeting.
According to Gerry Rice, the WEO will provide more details about the Indian economy. During the conference, he also provided details about what needs to be done in order to sustain inclusive growth in the Indian economy.
The priorities currently lie in cleaning up the balance sheets of corporates and banks. Moreover, fiscal consolidation must be achieved at the central and state levels. India must also focus on maintaining its momentum when it comes to implementing structural reforms in the factor markets. If the business climate of the country is improved, the economic growth will be much faster.