India needs structrual reforms to lift growth: IMF to India

Even as it termed India a “growth bright spot” among the emerging and developing economies, the International Monetary Fund (IMF) on Thursday said since the country — being a net oil importer — has been benefiting from lower oil prices, it should not fritter away the opportunity to carry out further reform of energy subsidies and increase essential social and infrastructure spending.

IMF managing director’s Global Policy Agenda (GPA) document released on Thursday said there is need for countries including India to accelerate structural reforms to lift growth potential and ensure inclusiveness.

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India should incentivise innovation and bring reforms to education, labour and product markets to raise competitiveness, it added.

Meanwhile, World Bank Group president Jim Yong Kim complimented India for implementing diesel subsidy reforms and reducing barriers to FDI in telecoms, railways, and retail.