IMF Highlights Key Growth Reforms For India To Enhance Economic Leadership; Details Here

Srinivasan highlighted the importance of implementing the labour codes approved in 2019-2020. He said, "...They will allow the labour markets to be flexible while giving social protection to workers"

India is set to maintain its position as the fastest-growing economy globally, with the International Monetary Fund (IMF) projecting a strong growth rate of 7 per cent for the financial year 2024-25. Krishna Srinivasan, Director of the IMF's Asia Pacific Department, highlighted on Tuesday that this growth trajectory will be bolstered by favourable macroeconomic fundamentals, a rebound in rural consumption, and easing inflation, which is anticipated to decrease to 4.4 per cent during this period.

In an interview with news agency PTI, he identified three key focus areas for India to enhance its growth outlook. He stated, "...Despite elections, the fiscal consolidation remains on track. The reserve position is pretty good. Macro fundamentals, generally speaking, for India are good.”

Srinivasan emphasised that reform priorities should centre on three key areas: job creation, reducing trade barriers, and improving infrastructure. Regarding job creation, he highlighted the importance of implementing the labour codes approved in 2019-2020. He stated, "...They will allow the labour markets to be flexible while giving social protection to workers.”

He also suggested that India could enhance its competitiveness by removing certain existing trade restrictions. "When you liberalise trade, you allow the productive firms to survive…," he explained, noting that this not only boosts competitiveness but can also lead to job creation on its own.

He emphasized the importance of continuing reform efforts in the infrastructure sector. Srinivasan highlighted that while advancements in both physical and digital infrastructure are significant achievements, attention must also be directed toward agriculture and land reforms. "You have to think in terms of strengthening education and skilling," he stated. Additionally, improving the business environment, increasing labour force participation among women, and addressing youth unemployment are vital concerns that need to be prioritised.