New Delhi: The International Monetary Fund (IMF) on Tuesday pared India’s growth forecast for 2019-20 by 20 basis points to 7.3% citing loss of momentum, following similar action by the Asian Development Bank (ADB) and the Reserve Bank of India (RBI). The report emphasised on enhancing governance of public sector banks and changes in hiring and dismissal regulations, which will help incentivise job creation and absorb the country’s large demographic dividend. “These efforts should be reinforced by enhancing governance of public sector banks. It, however, increased China’s GDP growth forecast marginally by 10 basis points to 6.3% for 2019. “If, however, any of the major risks materialise, then the expected recoveries in stressed economies, export-dependent economies, and highly-indebted economies may be derailed.

Source: Mint April 09, 2019 13:03 UTC