WASHINGTON: India should focus on increasing formal woman labour participation as the country continues improvements in product and market reforms, a top IMF official has said.
Ken Kang, deputy director of Asia and Pacific Department at the IMF, said that in recent years India has made very impressive progress in reforms.
“The recent implementation of the Goods and Services Tax (GST) is a major reform of the India tax system. It will enhance the efficiency of intra Indian movements of goods and services, help create a common national market, as well as help boost jobs and growth,” he said while replying to a question about India’s role in the development and growth of the Indo-Pacific region.
Introduction of flexible inflation targeting and of a statutory monetary policy which has helped to strengthen the monetary policy framework, the official said.
The government has recently announced a major recapitalisation plan for the public-sector banks in order to accelerate the work out of non-performing loans, as well as made some important legal improvements through a new insolvency and bankruptcy law, Kang said.
“We expect and hope that the reform momentum continues. Looking ahead there are important policy priorities.
“There is need to continue improvements in product and labour market reforms with a focus on increasing formal female labour participation, to improve the business environment, and reduce complex regulations, but also to address supply bottlenecks, particularly in the agricultural sector and distribution networks,” Kang added.