Ex-official of IMF for faster reforms

Stating that India is entering a period of accelerated growth, former IMF Deputy Managing Director John Lipsky on Monday said it cannot be achieved without reforms and new investments. "Viewed from a global perspective, India appears poised to enter a period of powerful progress that could carry widespread and profound benefits," Lipsky said at the Exim Bank's commencement day celebrations in Mumbai.

He said this exciting period of "accelerated progress" could encompass many important social, economic and financial aspects. Investor expectations are favourable both because of promises of reforms and because of problems evident in other emerging markets, he said.

"But this highly encouraging outcome can't be taken for granted. It will be realised only if opportunities are seized, including through a combination of reforms and new investment," he said.

Stating that "Some good luck wouldn't hurt, either," he added that the principal challenge is not so much in conceiving what to do, but in gathering popular support for change as well as effective implementation, which is always the most difficult part of any reform.

Lipsky, who is a senior fellow at Johns Hopkins University, had served as IMF's Deputy Managing Director from September 2006 to August 2011, as well as its acting Managing Director during May-July 2011.

He said that the biggest challenge is to improve productivity on a sustained basis. "The key challenge will be to boost productivity significantly, and on a sustained basis," he said.