Reforms needed to sustain Indian growth - IMF
UNITED STATES: India needs to build infrastructure and reduce
poverty faster to ensure it can sustain rapid economic growth, experts
from the International Monetary Fund and World Bank said.
Charles Kramer, division chief of the Asia and Pacific Department of
the IMF, said India must grapple for a balance between the rapid growth
of as high as 8 percent it has achieved in recent years and dangers of
Potential for sustained growth is underpinned by Indiaâ€™s young and
growing workforce and a high ratio of workers to retirees, increasing
productivity and the modernization of its financial system that has seen
credit expand, he said.
However, signs of inflationary pressure can be seen in industrial
capacity utilization hitting a 14-year high, rising wages and goods
prices and the credit expansion, Kramer told a symposium at the
Brookings Institution in Washington.
The IMF recommends that India continue policies to tighten an
accommodative monetary policy, reduce public debt and modernize the
financial sector while also addressing bottlenecks in water supply,
electricity and transportation, he said.