Asserting that India has shown that progress on reforms could “ignite” business investment, the IMF today said the adoption of goods and services tax is poised to boost the country’s medium-term growth.
“India’s strong reform push in 2016 is welcome and should continue apace. Adoption of the goods and services tax is poised to boost India’s medium-term growth,” the IMF said in its latest Asia Pacific regional economic update.
Greater labour market flexibility and product market competition remain essential to create jobs and raise growth. Priorities also include effective implementation of the new corporate debt restructuring mechanisms, it said.
“As shown by India, progress on reforms could ignite business investment (including already strong FDI inflows), further boosting domestic demand,” the IMF said.