09 AUG,2022 | MEDC
The IMF has recommended that India should gradually withdraw its fiscal and monetary policy stimulus, develop export-promoting infrastructure, and negotiate free-trade pacts with its key trading partners to provide a sustainable boost to exports. It further added that India should liberalize its investment regime accompanying it with a reduction in tariffs, and focus on structural reforms which could deepen integration in global value chains and attract FDI. These are certainly some of the key policy measures India needs to adopt in the post-Covid world to ensure a sustained economic revival. The expected inclusion of India in international bond indices should increase portfolio investment inflows for financing the nation's current account deficit over the medium term. Given the global scenario – particularly, as to what is happening in Ukraine – Indian policymakers will need to do a tightrope walk.