Economic reforms in India News

India urgently needs to regain the level of growth it witnessed since 2003 and a lot needs to be done including an urgent resolution of bad loans, which seems to have begun. But, avoiding an unnecessary hawkish stance by the RBI would supplement government efforts in reviving investor sentiments.

Taking a swipe at Congress President Sonia Gandhi, Sanjaya Baru claimed that "Sonia Congress" deliberately tried to malign Rao who was Prime Minister during 1991-1996.

Underlining that India's 7.5 percent growth rate may be "overstated", the US has said the Narendra Modi government has been "slow" to match its rhetoric in economic reforms even as it appreciated measures taken by it in areas like bureaucracy and easing FDI restrictions.

Many US policymakers and stakeholders are concerned that neither the Indian government’s “rhetoric” nor America’s bilateral engagement with it has led to substantial economic reforms in India, according to a report by US Congress’ research wing.

The government will have to go through a "very difficult process" of pushing reforms and projects to propel India to a high-growth path as it will not happen through some magic wand, Chief Economic Advisor Arvind Subramanian said today.

Accusing Prime Minister Narendra Modi`s government and its political allies of trying to silence dissent, the New York Times on Tuesday suggested that it may stall progress on economic reforms.

Jaitley also said the political opposition is unlikely to obstruct the reform process, including on the direct and indirect tax reforms, and he was hopeful about the GST getting through as well which is one of the few reforms that has been held up.  

President Pranab Mukherjee on Saturday said political stability and new initiatives taken by the government will help India emerge as an attractive investment destination and make an 8 per cent growth rate 'achievable'.

Know more about the reasons behind India's stock market ongoing fall:

Moody's said that a failure by the government in implementing key reforms such as Goods and Services Tax (GST) and land acquisition laws could hamper investment and signal a derailed reform prospect.

Liberalisation of foreign direct investment (FDI) rules in 15 sectors is a significant structural macroeconomic reform that will support investment and real GDP growth over the long term, Fitch Ratings said Thursday.  

 Pledging its support to big-ticket investments in Bihar following the Nitish Kumar-led Grand Alliance's thumping victory, India Inc today sought a renewed focus by the Modi government at Centre on economic reforms.

Addressing a gathering of economist at the 6th Delhi Economics Conclave, Modi said that efforts of the government to bring back black money stashed abroad have unearthed Rs 10,500 crore.

In a report titled India Outlook: Searching for Potential, Moody's Analytics said for the country to reach its growth potential it has to deliver the promised reforms.

The Modi government has kindled huge interest in the US private sector on India but needs to take steps on economic reforms, including the key GST bill, as creating a more transparent and predictable tax structure is critical, a top Obama Administration official has said.

A series of reforms unleashed by India in recent months are "important steps" around open, predictable and rules based reforms, a senior American trade official has said, but insisted that more needs to be done to attract foreign investments in particular those from the US.

Ahead of the Budget, Finance Minister Arun Jaitley on Friday hinted at more reforms for faster economic growth and rationalisation of expenditure, saying the government does not believe in living on borrowed money.

Lauding Prime Minister Narendra Modi for creating a sense of optimism in the country, NRI industrialist Prakash Hinduja said the Indian diaspora now wants faster implementation of reform measures and the government should consider a separate ministry for NRIs.

Mutual funds pumped in more than Rs 6 trillion in the debt markets in 2014, an increase of 28 percent from the preceding year, primarily on account of improved sentiment.