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