India's economic outlook remains clouded due to pandemic-related uncertainties: IMF

India's economic outlook remains clouded due to pandemic-related uncertainties and a persistent negative impact of Covid on growth drivers such as investment and human capital could prolong recovery and impact medium-term growth,according to the International Monetary Fund.
India needs to pursue privatisation, undertake revenue boosting measures and enhance expenditure efficiency to enhance its fiscal space, the statement on Article IV consultation with India said.

"Fiscal space can be enhanced through a credible and clearly communicated medium-term fiscal consolidation strategy, enhancements in expenditure efficiency, improved public financial management and revenue enhancing measures, as well as the privatization agenda," it said.

The IMF executive board said India's long-standing reform priorities include ongoing labor and land reforms, infrastructure investment, improvements in governance, continued trade and investment liberalization, and improving education outcomes.

"Such reforms would not only help maximize India’s long-term growth and demographic dividend, but also help alleviate poverty and inequality, and deepen the country’s integration into global value chains. India’s progress toward transitioning to a greener and more inclusive economy is welcome," it said.