IMF suggested three- pronged approach structural reform in India

Vastavam web: The IMF has suggested a three- pronged approach for structural reform in India that includes addressing the corporate and banking sector weaknesses, continued fiscal consolidation through revenue measure, and improving the efficiency of labour and product markets.Deputy Director Asia Pacific Department of IMF, Kenneth Kang, said the favorable outlook for Asia was an important opportunity for India to push forward with difficult reforms.
“First priority is to address the corporate and banking sector weaknesses, by accelerating the resolution of non- performing loans, rebuilding the capital buffers for the public sector banks, and enhancing banks’ debt recovery mechanisms,” he said.”And lastly, it’s to maintain the strong momentum for structural reforms in addressing the infrastructure gaps, improving the efficiency of labour and product markets as well as furthering agricultural reforms,” said Kang.
“There is a need to reduce the number of labour laws which currently number around 250 across the central and the state level,” said Kang.
He said India should also focus on closing the gender gap which may help a great deal in boosting the employment opportunities for women in India.According to IMF s Regional Economic Outlook, India s growth slowed in recent quarters due to the temporary disruptions from the currency exchange initiative demonetization that took place in November 2016, and the recent roll-out of the Goods and Services Tax (GST).