By Lalit K JhaWashington, Oct 14 (PTI) The IMF has suggested a three-pronged approach for structural reforms in India that includesreducing the number of labour laws, improving infrastructureand closing the gender gap among others.
Kenneth Kang, Deputy Director of Asia Pacific Department,IMF said the favourable outlook for Asia was an importantopportunity for India to push forward with difficult reforms.
"As such, there should be three policy priorities in thearea of structural reforms," Kang told reporters here.
"First priority is to address the corporate and bankingsector weaknesses by accelerating the resolution of non-performing loans, rebuilding the capital buffers for thepublic sector banks and enhancing banks' debt recoverymechanisms," he said.
Secondly, Kang said, India should continue with thefiscal consolidation through revenue measures, as well asfurther reductions in subsidies.
"And lastly, it's to maintain the strong momentum forstructural reforms in addressing the infrastructure gaps,improving the efficiency of labour and product markets as wellas furthering agricultural reforms," he said.
Responding to a question on labour market reforms, Kangsuggested reforming the market regulations in order to createa more favourable environment for investment and employment.
"There is a need to reduce the number of labour lawswhich currently number around 250 across the central and thestate level," said Kang.
He said India should also focus on closing the gender gapwhich may help a great deal in boosting the employmentopportunities for women in India.
"Improvements in infrastructure can be one important wayto facilitate the entry of women into the labour force. But inaddition, there is a need to strengthening the implementationof specific gender regulations, as well as to invest more ingender specific training and education," Kang said.
According to IMF's Regional Economic Outlook, India'sgrowth slowed in recent quarters due to the temporarydisruptions from the currency exchange initiative --demonetisation -- that took place in November 2016, and therecent roll-out of the Goods and Services Tax (GST).
The report also said that the growth in 2017 was reviseddownward to reflect the recent slowdown, but is expected toaccelerate in the medium term as these temporary disruptionsfade. PTI LKJ CHT CPS AKJCPS.
This is unedited, unformatted feed from the Press Trust of India wire.