Major reforms unlikely in election year: IMF chief about India

IMF chief Christine Lagarde today said she does not expect the pace of economic reforms in India to continue in an election year.

She made the remarks during an interaction with reporters at the start of the spring meeting of the international finance organisations. "We have seen and we are seeing, I'm not sure that we will be seeing in the next few months given the, elections that are coming up, but we have and we are seeing major reforms that we had recommended and advocated for a long time," she said responding to a question on economic reforms in India.

The Managing Director of the International Monetary Fund said she does not expect the pace of economic reforms to continue in an election year. "Whether you talk about the GST, whether you talk about reforms of the bankruptcy law, those are good reforms. Hopefully it will continue to position India in order to reap the benefit of the upswing, continue to develop its internal markets and generate this excellent growth rate of 7.4 per cent, which is one of the highest in the emerging market economies," Lagarde said.

"We expect more and you know, whether it's in the banking sector or in other sectors, more reforms are expected," she said.  On Tuesday, the IMF said India is expected to grow at 7.4 per cent in 2018 and 7.8 per cent in 2019, leaving its nearest rival China behind respectively at 6.6 and 6.4 per cent in the two years.