Washington, Ta. December 16, 2019, Monday
Geeta Gopinath, chief economist of the Indian origin of the International Monetary Fund (IMF), advised the Indian government on the improvement of the banking sector in the economy.
Washington-based Geeta is coming to India this week. Earlier talking about the state of the Indian economy, he said that there is a need for radical change in the banking sector.
Along with this he demanded to take steps to increase the demand at the local level and create jobs. The 48-year-old Geeta is well known worldwide as an economist. He is the IMF's Chief Economist for 2018.
Meanwhile, Reserve Bank of India Governor Shashikant Das had said that India's economy was going to slow down, it was estimated. So before the economy slows down we have reduced the repo rate. Reducing the repo rate usually results in more money flowing into the economy. This gives the stagnant economy some momentum.
Das said both the central bank and the government have taken timely steps. So that economic calamity can be resolved. He expressed optimism that the end of the tariff trade between the US and China would also boost the economy.
India's GDP rate is steadily declining. In this regard, Gita said that the government will have to take proactive measures for this. He also said that if any government got a second term, it should start with the necessary economic reforms.
It may not get better afterwards. Former RBI Governor Raghuram Rajan also made considerable efforts to reform the banking sector. But the government could not be found in it.
He said that banking sector in India is very important to maintain its reputation. At the same time, it is important that the state and central government do not grow, create a conducive environment for investment, maintain transparency in financial transactions and improve the level of basic facilities like education and health.
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