India should focus on structural reforms, bank clean-up and labour reforms: IMF Chief Economist Gita Gopinath
With economic growth slowing to a six-year low, IMF Chief Economist Gita Gopinath says the government should undertake structural reforms such as bank clean-up and labour reforms to address the slowdown in domestic demand.
Gopinath, 48, who is travelling to India this week, rooted for government policies focusing on managing a slowdown in domestic demand, and on boosting productivity growth and supporting employment creation in the medium term.
"Given the cyclical position and the structural challenges of the Indian economy at this point, we recommend that policies focus on managing the slowdown in domestic demand, and on boosting productivity growth and supporting employment creation in the medium term," she told PTI in an interview.
Recommending a series of key policy priorities for the Prime Minister Narendra Modi government, she said, "Politically, the time -- early in the government's second term -- is right for a structural reform push."
GDP growth slowed for the sixth consecutive quarter in the July-September quarter to 4.5 per cent as manufacturing slumped on low domestic consumption.
Kolkata-born Gopinath said the policy priorities of the government should also include a credible fiscal consolidation path that is more ambitious than currently envisaged by the government.
"This is needed to reduce the high level of debt and reduce crowding out which would free up financial resources for private investment. This should be driven by subsidy-spending rationalisation and tax-base enhancing measures," Gopinath said.
Responding to a question, Gopinath said India's medium-term vision to reach a USD 5-trillion economy which focuses on boosting investment is appropriate. And so is the commitment to support the rural economy, boost infrastructure spending, streamline the goods and services tax (GST), direct tax reforms, and pursue a business-friendly policy agenda, she noted.
In this regard, Gopinath advocated, among others, three policy priorities for the Government of India.
由于国内消费低迷导致制造业下滑，印度GDP增速在7 - 9月当季连续第六个季度放缓至4.5%。
First is to accelerate the clean-up of the banks, other financial institution, and corporate balance sheets and enhance governance of public sector banks to revive bank credit and enhance the efficiency of credit provision, while monitoring closely emerging risks from the liquidity stress in non-banking financial companies (NBFCs) and enhancing supervision and regulation of the NBFCs.
The Indian-American called for continued fiscal consolidation over the medium term -- both at the Center and state levels -- to lower elevated public debt levels, supported by further steps to increase tax compliance and administration, as well as improve fiscal transparency.
And finally, labour, land, and product market reforms aimed at enhancing competition and governance, along with infrastructure investment, should be a priority to create more and better jobs for India's young and rapidly growing labour force.
"Improvements in health and education are essential for broad-based inclusive growth," Gopinath said.
Responding to a question, Gopinath said, "The extent of the slowdown of the Indian economy has surprised many, including us here at the IMF (International Monetary Fund)."
译文来源：三泰虎 http://www.santaihu.com/49032.html 译者：Joyceliu
India must be sold completely to whiteman in pieces.
After Raghuram Rsjan, everybody, I repeat, everybody, started giving unsolicited advice to government of India. But I want to ask gita goliath what advice she had given to government of Kerala when she was working with them.
One Bakth will say, all people are blaming the govt but not giving solutions. You are asking why she is giving unsolicited advice?!! It seems other than opposing and abusing all those who are not agreeing to stupidity of Modi govt, bhakths have no other work.
Modi not agenda to solve economic ploblem, people give mandate to solve problem but bjp using mandate to create new problems. Chines import increase but govt not making our industry competitive with reform. Gita gopinath give your opinion to other nations that benefits them.
Very true. Modi will create new problems and blame it on Congress. Even after 5 years Modi has not gone beyond blaming congress and others from opposition. This is his Gujarat Model.
every body talk about REFORMS but nobody talk about reform in political gain to put heavy burden on public revenue to tune of lacs of crore per year. This is interest of all parties so nobody raise and put bill TO ABOLISH LIFE LONG PENSION AND FREE PERKS TO ALL MP ,MLA AND NETAS. IF THIS SPENDING AND EXPENSE IS STOP CAN SAVE HUGE TO TREASURY AND NEED NOT THINK FOR ENHANCING, IMPOSING TAXES ON PUBLIC.tHIS STRUCTURAL REFOM IS MUST IN NATIONAL INTEREST.
Biju J A
It's definitely a wake up call for the Govt. And time to do things with deep planning and discussions than impromptu decisions that seem to be loading up all too frequently. It's not muscular eye- catching policies we need. The Govt had started off very well bit now seems getting increasingly lost...
Her suggession bears truth. India's present recession is in the nature of structural recession as against normal cyclic recession. Structural recession is in the nature of consumptive or cancerous economy, sap the economy from the core. If some measures and structural reforms immediately not taken, it will break down and we may see India's position not far off from Pakistan's.
The biggest killer of Indian economy is the real estate sector all across India. The 20yr home loan was over leveraged by builders to push apartment and therefor land prices to unsupported levels. 20years growth was started being captured in 1year GDP, how long can we accumulate and postpone liabilities to later date and fool country over growth.
Madam,modi is perfect western slave and under your orders brought GST,Made banks beyond prosecution and allowed them to loot customers. We are now envy of USA-UK as even they dont have tota tarian looting mechanisms modi have developed on your orders.
Fake and unsubstantiated personal and ideological biases.
This govt has given more stress on controlling food prices by curbing export and encouraging import. Rural areas are in anemic condition. No demand no growth.
Listen and act from inhouse expert like Dr.Manmohan singh first & then consider others
I am tired of Indians going to Harvard and telling what India must do. Are you ??? If yes then tell your government to control population, keep IITs and IiMs in India, figure out how to pay high wages, clean up your streets, build toilets and find a massive 20 trillion dollar budget to spend on our people like America on debt... Keep the Harvard educated silver spooners out.. A recent survey found to enroll in Harvard you have to be ultra wealthy...
我厌倦了印度人去哈佛镀完金，就对着印度说必须怎么做。你呢? ? ?如果你也这么认为，那就告诉你的政府控制人口，把印度工学院和印度管理学院的毕业生留在印度，想办法支付高工资，清理街道，修建厕所，然后拨出20万亿美元的巨额预算，把钱花在国民身上……把那些哈佛毕业的衔着金钥匙出生的人挡在门外。最近的一项调查发现，要想进入哈佛，你必须是超级富豪……
Who are the loan defaulters. Why RBI and govt is afraid to announce their name and details of loan.
There have been many great economists who have only critical approach without any constructive views. Learned people who are occupying responsible positions in the ministries, in administration, in supervisory and those in judiciary should act in tandem to achieve the national goals taking cue from the constructive ideas put forth.
Education of good quality is the key. Educated population will be creative enough to generate new employment and to elect good leaders who don't sell dreams and get elected.
Banks should be given the right to set off assets to wright off NPAs from big Bank loan defaulters using First Court judgment.
(1)Farmers’ incomes need to be doubled by empowering and enabling farmers to bypass intermediaries and selling their produce directly to consumers (2) Healthcare needs to be upgraded by hiring all Doctors including those with only Diploma in medical practice (MRP) (3) Improving the ratio of teachers to students to 10:1, re-orienting the learning of students to the knowledge, skills and psychological orientation to the requirements in the jobs which the students want to take up post-studies. All the above-mentioned reforms help create good enough employment.
#1 is an utopia. Its impossible to eliminate middle men.#2 will encourage corruption. it will only become cash cow for politicians and their kin.#3. First step should be to build Good Teachers. Then think about teacher pupil ratio.
mam ur suggestion are good but CAn India put in to prctice .. structure reforms means diluting free riders, middle men and touts... eliminating bodies lik eAPMC none would be accepted as they are backbone of making money by side windows.by LOOTYENS delhi feudal elite .. let us hope ur advice is heeded
What lovely words by Gita Gopinath from IMF. This sort of timely advice has to be followed by the government, as the advise is not only from world's leading institutions but also from deep rooted experience and above all it is the advice by the daughter of this land. Appalauds to Dr. Gopinath, the true Chief economist from IMF
Truth Is Bitter
Easy preach theory ... Much easy to Blame Nehru and Pakistan ...
Truth Is Bitter
Corporate looting banks, Government looting RBI, People have NO Job, No Money ... How economy will grow ???
good way to visit home town at Govt cost !!!
Who are you? what are you talking? please mend with you business and don't lecture us..we're busy in hindu muslim..economy is second to us!
My uninformed, misguided and poor friend, stop blabbering..pls state what problems india is facing in specific, don't generalise!
These are too generalist tips which mean nothing to put government of illiterates on track.
The great economist has said nothing new and nothing not known to either the Govt or the people. She would have done better if she had detailed the HOW instead of repeating WHAT.
Hari Krishna Johri
Feku,Taklu & all these sadak chap Netas will not allow any change as for them Vote politics is the objective.These Netas are mean of lowest order & self centered ,they are only concerned about themselves ,they don't care about the progress of the Country & well being of public.Disgusting.
But then Modi is perfectly ruled by IMF-WB etc.Just see composition of his foreign educated advisers. They were appointed by foreign banksters to bring reforms they like to see.No real deshbhakti by modi here.IMF reforms means temporary jobs at malls-petrol pumps-watchman-construction workers with zero social security and job security.IMF also says sell your assets to saudis--israelis-russians-americans and become slaves in your own nation.
Dont listen to IMF.THeir medicine kills the patient .
The banking mess is due to fraud by the employees at high places in collusion with the borrowers. How to fix their brain to function in the right path ?