A three-pronged approach for structural reform in India has been suggested by International Monetary Fund (IMF). These include:
- addressing the corporate and banking sector weaknesses, by accelerating the resolution of non- performing loans, rebuilding the capital buffers for the public sector banks, and enhancing banks’ debt recovery mechanisms
- continued fiscal consolidation through revenue measure including reductions ion subsidies and,
- improving the efficiency of labour and product markets by maintaining strong momentum for structural reforms in addressing the infrastructure gaps.
Reforming the market regulations in order to create a more favourable environment for investment and employment. There is a need to reduce the number of labour laws which currently number around 250 across the central and the state level. India should also focus on closing the gender gap which may help a great deal in boosting the employment opportunities for women in India.
Improvements in infrastructure can be one important way to facilitate the entry of women into the labour force. But in addition, there is a need to strengthening the implementation of specific gender regulations, as well as to invest more in gender specific training and education.
According to IMF’s Regional Economic Outlook, India’s growth slowed in recent quarters due to the temporary disruptions from the currency exchange initiative— demonetisation— that took place in November 2016, and the recent roll-out of the goods and services tax (GST). The report, however, went on to say that the growth in 2017 was revised downward to reflect the recent slowdown, but is expected to accelerate in the medium term as these temporary disruptions fade.