Maurice Obstfeld IMF Chief Economist praises Modi Govt for

Mangalore Today News Network

Washington, Dec 10, 2018 : India’s growth has been "very solid" over the past four years, IMF’s Chief Economist Maurice Obstfeld on Sunday said, praising the fundamental economic reforms like the GST and the Insolvency and Bankruptcy Code carried out by the government,  NDTV reported.

 

Maurice Obstfeld, 66, who is set to retire this month-end  will be succeeded by Gita Gopinath, the second Indian to be appointed to the position. Former RBI Governor Raghuram Rajan had served as Chief Economist of the International Monetary Fund.

"India under the government of Prime Minister Narendra Modi has carried out some really fundamental reforms. These include the Goods and Services Tax (GST), the Insolvency and Bankruptcy Code...A lot of what they have done on financial inclusion has been really important," Mr Obstfeld told a group of journalists here.

Summing up his impression of India’s economy in the last four-and-a-half years of the Modi government, the top IMF economist said the country’s "growth performance has been very solid".

"I mean, not so much in the third quarter of this year, but generally it has been quite solid," he said.

"There are important vulnerabilities, so it is important for the reform momentum to be maintained even as an election comes up and for the path of fiscal adjustment to be maintained," Mr Obstfeld added.

He said one risk that has become much more evident in the last few years has been non-bank finance, usually called shadow banking.