Reforms must for India’s growth: IMF

The International Monetary Fund on Tuesday said India must accelerate reforms if it wants to get back to the fast growth trajectory. HT reports.

The International Monetary Fund on Tuesday said India must accelerate reforms if it wants to get back to the fast growth trajectory.

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While India was fast to recover from the global financial crisis, its growth slowed down more than most emerging markets because of "dampened" investments, said a statement issued after IMF’s Article IV Consultation with India held in March.

With investments slackening and inflation riding high, India’s growth rate will be 6.9% in 2012, IMF said in a different statement. The economic survey, the pre-budget report card, had blamed the slowdown on recession, hardening crude oil prices and inflation, the IMF added “structural impediments” to that list. “The main domestic risk is a further weakening of private investment if government approvals do not accelerate, reform efforts are not reinvigorated, and inflation remains high and volatile,” the IMF said.