International Monetary Fund: Indias problem is lack of new infrastructure projects

Written by fe Bureau | New Delhi | Updated: Feb 23 2014, 02:33am hrs
IMFIMF has estimated India's GDP growth at 4.6% for FY14 and at 5.4% for FY15. Reuters
India's biggest concern is the lack of enough new infrastructure projects in the pipeline, the International Monetary Fund's (IMF) senior resident representative for India and Nepal, Thomas Richardson, said on Friday.

Even if the cabinet committee on investment is successful in getting stalled projects up and running again, the pipeline of new investment after the stalled projects is really thin. That is the worst effect of the slowdown, Richardson said at an event hosted by ICRIER.

The IMF released its annual assessment of India late on February 20. In the report, it estimated India's gross domestic product (GDP) growth at 4.6% for FY14 and at 5.4% for FY15. India has very little room to adopt counter-cyclical policies, constrained by persistently-high inflation, and sizeable fiscal and external imbalances. Spillovers from renewed external pressures interacting with domestic vulnerabilities are the principal risks, the report had stated.