In an exclusive interview with the Press Trust of India, Tao Zhang, Deputy Managing Director of the International Monetary Fund said: “The government has made significant progress on important economic reforms that will support strong and sustainable growth going forward.”
“We expect that the Goods and Services Tax (GST), which is targeted to be applied, starting in July, will help raise India’s medium-term growth to above 8 per cent, as it will enhance production and the movement of goods and services across Indian states.”
“We are extremely impressed by the work that is being done and that we expect it will pay off in terms of higher growth in the future. More could be done to raise agricultural productivity and enhance market efficiency. This would help increase the supply of high-value foods, enhance returns to farmers, and dampen food inflation pressures.”
The Economic Times reports that Zhang also stressed on the need for labor market reforms in India. “As India persists with its strong reform efforts, labor market reforms should take priority,” he noted.
