8% GDP growth for India will take tough decision, time: IMF
"To go back to eight per cent (annual growth rate) you (India) need to see move on a lot of fronts and investment picking up very robustly.
"It will depend very much on whether the government can deliver on all the reforms that they've committed to and sustain this economic reform momentum," Laura Papi, IMF Assistant Director, formerly with its Asia and Pacific Department, said.
"We think that an important array of reforms are needed to get back to 8 per cent growth including legislative moves. The land acquisition bill requires, of course, parliamentary approval, the GST requires even a constitutional amendment,
etc. Labor laws are even further out and less likely," she said in response to a question.
The IMF had yesterday said India's growth rate is expected to drop to 5.4 per cent in 2012-13 from 6.5 per cent the previous year.
This is a substantial drop from the impressive growth rate of an average of 8.3 per cent India registered between 2004 and 2011.
"Outlook is for subdued growth and a fairly modest recovery for this year still accompanied by quite high inflation and elevated current deficit.
The reason for this outlook is that investment has slowed significantly and we see some supply-side issues such as supply bottlenecks as having played an important part