New Delhi (27/10/2019): World Bank President David Malpass on Saturday suggested that further reforms and innovation will help spur growth in the country while addressing slowdown in the Indian economy to the global environment.
He also added that innovation in the financial sector will be critical in achieving PM Narendra Modi’s goal of USD 5 trillion economy by 2024-25. Although India has made progress in the financial sector, there is scope for further improvement in the banking sector, shadow banking and the capital market.
David Malpass said, “India should encourage progress in three primary areas. One is to allow the growth of the banking sector itself including the private sector. Second is deepening of corporate bond market and mortgage market and third is regulation of non-bank financial companies which have grown with the Indian financial system but entails some risks.”
“Prime Minister Modi has a goal of USD 5 trillion dollar economy. It will be assisted by innovation in the financial sector,” he said and on the economic slowdown, the World Bank president said India has been affected by the global environment and slowed from fast growth in earlier years.
Economic growth has hit a six-year low of 5 per cent during the first quarter of the current fiscal.
“What my prescription or suggestions are that openness to reform, innovation, improvement in government structure that allows for the faster growth. I think India has very good platform in doing that because of the experience India had with technology with knowledge as a broad concept within the society. They can help it move forward. It has made several important reforms in the last few years that can still pay off,” he said.
Appreciating the government move to cut the corporate tax rate, Malpass said, it should add to more growth.