According to a top IMF official, the India's overall macroeconomic environment looks positive structural reforms are needed to improve the business environment,
"Where I think there is a need for structural reforms if you want to truly exploit India's significant potential." Again, India has made tremendous, very great achievements in the areas of digitalization and infrastructure strengthening, where the efforts have been very impressive," said Krishna Srinivasan, Director of the IMF's Asia and Pacific Department, according to news agency ANI.
"There could be reforms aimed at improving the business environment, labor reforms, and the removal of trade barriers." All of this contributes to the creation of an atmosphere that will foster more investor competency, particularly in India. So, structural improvements, I believe, would be critical in providing support," he added.
Srinavasan also praised the Reserve Bank of India (RBI) for responding quickly to contain inflation, despite the fact that the main world economies are still grappling with price increases. "They've been fiscally responsible. This year's fiscal is expected to be 5.9 percent. The central bank has moved quickly to reduce inflation. The most current figure (for September) was 5%. As a result, inflation is decreasing. So, generally, India's macroeconomic environment is fairly sound," he remarked.
Meanwhile, the IMF raised its growth prediction for India for fiscal year 2023-24 on October 10. The country is expected to grow at a rate of 6.3 percent, rather than the 6.1 percent predicted in the prior prediction.
Previously, on October 3, the World Bank maintained India's GDP prediction at 6.3 percent, citing robust services activity. In its September estimate, the Asian Development Bank (ADB) predicted India would grow at 6.3 percent.