Mumbai, Oct.20 (HS): The IMF (International Monetary Fund) said that the decision of the government of India to reduce corporate tax is correct. This will help in increasing foreign investment in India. Also, investment from domestic companies will also increase. IMF Director (Asia and Pacific Department), Chengyong Ri said that India’s GDP growth is expected to be 6.1 percent in the current financial year. At the same time, it can reach 7 percent in 2020.
The IMF said that the need for rapid reform in banks- investment in India is expected to be accelerated due to monetary policy steps and reduced corporate tax. Also, India needs to focus on financial integration. Also, the financial situation should ensure long-term stability.
Anne-Marie Gulde-Woff, IMF Deputy Director (Asia and Pacific Department) said that India should solve the problems of the non-banking financial sector. However, the process of reforms in the banking sector is continuing with efforts such as providing capital to public sector banks.
World Bank and IMF reduced GDP growth estimates- IMF has reduced India’s GDP growth from 7 percent to 6.1 percent this year. He has said that India will have to undertake extensive structural reforms to overcome cyclical slowdown.
The IMF wrote in a recent World Economic Outlook report, India’s economy will grow by 6.1 percent in 2019 and may reach 7 percent in 2020. He said that growth estimates have been cut due to weak domestic consumption. The IMF had earlier projected India’s GDP growth to be 7.2 percent in 2020.
