India has worked on the fundamentals, but the problems must be addressed: the IMF
WASHINGTON: The International Monetary Fund ( IMF ) on Thursday he said that although India has worked on the fundamentals of its economy, there are problems, including the drivers of long-term growth, that must be addressed.
The IMF on Tuesday trimmed India's growth forecast by 90 basic points to 6.1 per cent. This is second downward revision in seven months and in total 120 basis points reduction. 100 basis points is equal to one percentage point.
"India has worked on the fundamentals (of its economy), but there are problems to be addressed. In the financial sector, especially non-banking institutions, there are steps taken now to consolidate banks. They ought to help resolve some of these issues," IMF managing director told reporters at a news conference here.
In India, what is critically important is to continue addressing the drivers of long-term growth. Investment in human capital in India is one of the top priorities. You have to continue incorporating women into the workforce. It's very important. India has very talented women, but they stay at home, he said.
Georgieva said there has been "a very strong growth" in India over the last years and the IMF is projecting reasonably strong growth for the country.
However, like the rest of the world, India is experiencing a slowdown. Therefore, just over six percent is what we expect to see in 2019, he said.
Structural reforms are a priority for India. We hope to see these reforms continue, Georgieva said in response to a question.