In order to strengthen the impact of the COVID- 19 pandemic, India has to continue to implement critical reforms in key fields such as health, work, land, skills, and finance, said the World Bank.
These reforms will aim to increase the Indian economy productivity and encourage private and export investments.
Today is a biannual flagship World Bank publication that summarizes the Indian economy. The present question describes and places the state of the Indian economy in a longer-term and world context in the previous six months.
It also provides a more profound analysis of certain economic and political issues and underlines Indian economic reforms, which must continue in the medium to long term.
Junaid Ahmad, Country Director of the World Bank of India, said: “Whilst the government continues to act with help from the reserve bank to restrict the effect of Covid19, the unpredictable existence of economic reinforcement in the world and the emergence of opportunities opened up by the current crisis are recognized as well.”
The report suggests that India should reassess grants to maximize any possible opportunity for efficiency gains, determine how much is lent domestically and internationally, generate more efficient non-tax revenues, and link the repayment of new debts with reinvestment receipts. The report instills fiscal discipline in the handling of Covid-19’s consequences.
The study notes that furthering these changes would help re-establish a 7-percent growth to economic development.
In order to make the financial system more stable, the report identifies clear areas for change: stability of the financial system, change of the non-bank finance sector (NBFC), deeper reforms of the capital market, incorporation of fintech for businesses to meet them faster and cheaper, and shifted to a strategic footprint of the public sector.
Strategy moves to a more engaged and key open part nearness in the monetary segment are invigorating. Worldwide experience shows this can improve banks loaning bolster limits, advance fruitful monetary intermediation, and limit financial presentation.
In addition in fields such as pharmaceutical products, medical supplies, and safety devices, the present crisis has also brought new economic prospects in the areas of digital technology, retail, health technology, and education-technology services to the forefront.
