India needs to reduce regulatory uncertainty to boost growth: OECD
On financial sector reforms, OECD said that bank portfolio restrictions should be relaxed, including a gradual reduction in share of government bonds held by banks and establishing a plan to phase out priority lending.
Also, the government has to "allow greater participation by foreign investors in the financial services sector and promote the entry of new private banks".
Besides, OECD said effective infrastructure-related regulations should be promoted. Severe infrastructure bottlenecks endure, particularly in the energy and transport sectors, the report noted.
The government should also "streamline land acquisition processes, including through improved land registration, to reduce costs and delays," it added.
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