India has worked on fundamentals, but there are problems to be addressed: IMF

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The International Monetary Fund (IMF) on Thursday said though India has worked on the fundamentals of its economy, there are problems, including the long-term drivers of growth, that need to be addressed.

“India has worked on the fundamentals (of its economy), but there are problems to be addressed. In the financial sector, especially non-banking institutions, there are steps taken now to consolidate banks. They ought to help resolve some of these issues,” IMF Managing Director Kristalina Georgieva told reporters at a news conference 2019, Annual meetings in Washington D.C..

“In India, what is critically important is to continue with addressing the long-term drivers of growth,” she said.

“Investment in human capital in India is a top priority. It has to continue. Bringing women into the labor force is hugely important. India has very talented women, but they stay at home. So, structural reforms are a priority for India, and we expect to see those reforms continue,” she added.

Georgieva said, “we have seen very strong growth in India over the last years.”

“IMF is projecting reasonably strong growth for India; although, like the rest of the world, India is experiencing a slowdown. So slightly over 6 percent is what we expect to see in 2019,” she said.