New Delhi: While the country is reporting a lesser number of cases for the past 2 months and the decreasing trend has been maintained, India is witnessing positive signs of recovery. The Indian Monetary Fund gave a statement on where Indian can focus on bringing the economy back on track.
The International Monetary Fund said on Wednesday that as the Indian economy recovers from the COVID-19 pandemic that hit it hard, it is important for the country to focus on public investment, particularly in green sectors, reported PTI.
As we move towards the recovery, it is also important to focus on public investment, particularly on green investment, so that the recovery can be inclusive and green, IMF's Fiscal Affairs Department Deputy Director Paolo Mauro told reporters during a news conference here.
He said India's debt is at the ratio of about 90 per cent, and it is important to give a signal that there is a medium-term fiscal framework in place that ensures investors that the debt ratio will decline in the medium term.
Responding to a question, Mauro said the situation is improving when it comes to the epidemic.
It is very different from a few months ago, he said, adding, fortunately, the number of cases is declining and the vaccination is becoming more widespread.
On the economic front, therefore, even though the situation is improving, the priority remains to address the health emergency. It remains to provide ample support, particularly to the poorer segments of the population through social protection, employment benefits, and so on, Mauro said.
He further said that in terms of more recent reforms, the National Asset Reconstruction Company, the so-called bad bank is potentially very promising because it is important to tackle non-performing loans.
It is very important that both the governance and the independence of such so-called bad banks be in place so that the costs to public finances can be kept under control and one can go back to promoting inclusive growth, Mauro said.