According to the IMF, India’s effort to strengthened the business climate and encourage investment in trade helped to attract investors. But so that the country needs further economic reforms to ensure more inclusive growth and sustainability. A question was made by the global giants like Facebook and Google in India on a recent FDI announcement. The International Monetary Fund’s Chief Spokesperson Gerry Rice came with the response to the question on Thursday. Last week many international companies have pledged USD 20 billion Foreign Direct Investment in India, and a whopping USD 40 billion this year. In recent years in India, several efforts have been made. It was to strengthen the business climate and encourage investment in the trade. These efforts have helped to attract investment and help to improve the current accounting financing mix and also helped to contain external vulnerabilities. This was the word of Rice to the reporters at a news conference.
Several reforms have included in the new bankruptcy code, National Goods and Services Tax. These helped India to gain business ranking, moving up rapidly in the World Bank Ease of doing business index, which helped India to move up to 63 in the Ease of Doing Business Rankings in 2020, but in the case of 2018, it was ranked 100. It was a significant improvement indeed, despite this India needs more economic reforms. Several economic reforms including product mixed land, labor, and others and additional infrastructure are necessary to attract even more investment and to ensure sustainability and more inclusive growth in India. This was the response of the International Monetary Funds Chief Spokesperson Gerry Rice to the question made by the global giants like Facebook and Google giants on the recent FDI announcement.
In the recent update made by IMF to the World Economic Outlook projected India’s growth rate at -4.5per cent and then about 6per cent recovery for the fiscal year 2020-21 and fiscal year 2021-22 respectively. The downside risk remains despite a gradual recovery in activities and a solid agricultural performance. One of the main downside risks is, of course, is the continued spread of the pandemic COVID-19 in the World. And another outbreak could require additional lockdowns, social distancing, and concerns about the COVID-19 virus could also dampen consumer’s conference and which results in the delay of the economic recovery. This is not only the case just in India but it is the case in many countries in the World. This aims to improve the business environment and to encourage investment to attract investments but these efforts are not enough. India needs further economic reforms to attract investments.