New Delhi/Washington: Chief Economist of the International Monetary Fund (IMF), Geetha Gopinath, met Indian Prime Minister Narendra Modi and held talks. A few days ago, Geetha Gopinath had expressed concerns over the slowdown in the Indian economy. Citing regulatory uncertainty as one of the significant reasons in the slowdown of the Indian economy, Geetha Gopinath warned that urgent measures were required to correct the situation. The Senior officials at the IMF claimed that this issue surfaced from the inspection reports prepared by them.
The Indian economy has slowed down. The IMF, in its inspection report, has said that this will slow down further, in the time to come. Ranil Salgado, from the Asia-Pacific division of the IMF, said that immediate measures are necessary to bring the Indian economy on track whereas, Geetha Gopinath has recorded a direct observation that uncertainties are hitting the Indian economy on the regulation and implementation level.
Furthermore, Geetha Gopinath added that this decline in the Indian economy has come as a surprise. Against this background, her meeting with Prime Minister Modi attains significance. It is claimed that Geetha Gopinath submitted some crucial factors, causing a slowdown in the Indian economy, the details, of which are not available. But it is reported that Geetha Gopinath clarified that it is necessary to implement economic reforms programs speedily, for the recovery of the economy and to bring it back on the track of progress.
Meanwhile, Finance Minister Nirmala Sitharaman also accepted that the decline in the Indian economy is a cause for concern. Assuring that measures are being taken to bring the economy on track Sitharaman had blamed the international situation for the decline. However, the former Reserve Bank governor and economists have been warning that the flawed economic policies are responsible for the decline.
The economists warn the government that the decline cannot be ignored hurling excuses of the international situation. New employment creation has stopped, and the existing employments also are under threat. At the same time, the demand from the rural sector is at the lowest in 20 years. Economists warn that the situation could be worrisome and if the same continues, the country will have to face severe adverse effects.