30 DEC,2019 | MEDC
In its latest country report on India, the IMF has said that the country’s macroeconomic outlook is more subdued and uncertain than in recent years. Reviving sentiment is key to battling the slowdown, and the government is expected to take the lead in doing so. The slowdown is likely to worsen the NPA issue, and, as the RBI governor has rightly said, corporate governance standards at financial institutions are central to a sustainable economic recovery. Major changes may need to be made to regulatory supervision to bring both accountability and responsibility into the limelight. But the ball is now in the court of the Finance Ministry rather than the RBI, and much depends on how fiscal policy will be framed to deal with the structural issues facing the economy.
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