NEW DELHI: International Monetary Fund (IMF) Managing Director Gita Gopinath has cautioned that India needs to work on labour markets and land, even as she hailed the country for doing better than many global economies.
Gopinath issued a warning against increasing global fragmentation in an interview Wednesday on the sidelines of the World Economic Forum (WEF) gathering in Davos, claiming that it lowers the rate of global growth.
She was cited as saying in the interview that the Covid-19 outbreak and the Russia-Ukraine war have caused countries to become considerably more concerned about their national security and economic security, which is pushing them to implement measures that could further fracture society.
Although she acknowledged that there have been many supportive remarks about India, she also said that more reforms are required if foreign direct investment is to increase in the manufacturing sector.
As they want to diversify away from nations like China, many corporations and companies are looking towards India as an investment destination, according to Gopinath.
Commenting on India's growth rate, the top IMF official said that in the current fiscal, it is 6.8% while it would be 6.1% for the next fiscal year.
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