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IMF wants India to focus on medium-term fiscal consolidation

  •   Thu, Feb 13 2020 10:05:47 PM

United Nations, Feb 13 (IANS): The International Monetary Fund (IMF) says that the recent Indian budget's "accommodative fiscal stance" is appropriate in the weaker economic scenario, but wants New Delhi to focus in the medium term on fiscal consolidation because of the growing debt levels.

Since India's economic environment is weaker than what the IMF had forecast earlier, a "more accommodative fiscal stance in the budget we think is appropriate," Communications Director Gerry Rice said on Thursday at a news conference in Washington.

But, he also said, "while the budget touches on ongoing sectoral efforts, there remains an urgent need for more ambitious structural and financial sector reform measures and a medium-term fiscal consolidations strategy anchored in tangible revenue and expenditure measures especially given rising debt levels".

The IMF sharply cut its growth estimate for the current fiscal year for India to 4.8 per cent last month from the 7.5 per cent made in January last year.

 
  

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  • Ramesh Kumar Nanjundaiya, Sunnyvale, California, USA

    Fri, Feb 14 2020

    IMF is bang on by recommending India to focus on medium term fiscal consolidation. The need of the hour is optimism and to achieve this India should further all its efforts on furthering bilateral trade and investment relations with the USA. Trump and his large business delegation are shortly visiting India. USA will be able to divert business towards India provided they get full assurance on India's Intellectual Property rights and the level of transparency as well as to maintain the attractiveness of the US to entrepreneurs and the US leadership position in global tech development in the South Asia region. Another area, USA is looking at India is to see if there is in fact gender parity at work. Today in India, only about 30% of the women work where the worldwide average is 50%. India will grow economically only if this population is put to work and consciously giving more opportunity to women across all sectors. In the current decade, woman in workforce will be a major enabler for India to work towards the magic US$ 5 trillion economy figure. There are lessons to be learn from the USA on this aspect in view of their extensive research. They essentially want to see the ease of business and ease of living to enable the private sector to create wealth over a long period of time. The Government of India is working rapidly to become an overseas investor friendly country, by scrapping a number of laws, procedures, rules and regulations and to digitize the Indian economy. Through a series of reforms, India has jumped up 65 positions in latest The World Bank Ease of Doing Business report. The next stage is to be within the global top 50 countries. In today's world of high geopolitical turmoil, the geostrategic play and the geo-economics continuing in a state of flux, for any commercial and business partnerships, global marketing, trade and investments activities, the concept of bilateral relationships is taking center stage and winning over multilateralism.

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