Foreign companies have pledged investments of over $ 40 billion in India so far this year
Washington:
India’s concerted efforts to strengthen the business climate and encourage investment in trade have helped attract investment, but the country needs further economic reforms to ensure sustainable and more inclusive growth, according to the IMF.
The remarks by International Monetary Fund chief spokesman Gerry Rice on Thursday came in response to a question about recent FDI announcements made by global giants like Facebook and Google in India.
In recent weeks, several international companies have pledged $ 20 billion in FDI to India, and $ 40 billion this year so far.
“Concerted efforts have been made in recent years in India to strengthen the business climate and encourage investment in trade, and these have helped to attract investment and improve the composition of current account financing and also to contain external vulnerabilities, ”Rice said. journalists at a press conference in Washington.
“Relevant reforms have included the new bankruptcy code, the national tax on goods and services. These helped to gain in the business rankings in India, rising rapidly in the World Bank’s Ease of Doing Business Index, to 63 in 2020, up from 100 in 2018, significant progress there. low, indeed, ”Rice said.
“Nonetheless, further economic reforms, including labor, product mix and the like, and additional investment in infrastructure are needed, in our view, to attract even more investment and to ensure sustainable and more inclusive growth in India, ”he said in response. At the question.
Recently, the IMF, in its World Economic Outlook update, projected India’s growth rate to -4.5%, then a recovery of 6%, for fiscal year 2020-21. and fiscal year 2020-22, respectively, he said.
“Our projection for fiscal year 2020-2021 has been revised downwards, as has been the case for most countries affected by the pandemic,” Rice said.
“Overall, I think we would say the risks to the economic outlook remain,” he said.
Despite a gradual recovery in activities and a solid agricultural performance, downside risks persist. “The main downside risk is, of course, the continued spread of the pandemic,” he noted, referring to the coronavirus pandemic.
“New epidemics may require additional lockdowns, and concerns about the virus could also weaken consumer confidence and delay economic recovery. Again, this is the case not only in India, but in many countries,” Rice said.
(This story was not edited by GalacticGaming staff and is auto-generated from a syndicated feed.)
