India must boost credit, labour to raise growth potential, says IMF

"We had lost two years of growth" because of the pandemic, Choueiri said in a separate interview Friday with Bloomberg Television's Kathleen Hays. "There is still catch up growth happening in India."

India needs to generate more jobs and credit to power its economy back toward its growth potential, which has been hamstrung by a strained financial sector and the pandemic, according to the International Monetary Fund’s mission chief for India.
 

The South Asian nation’s gross domestic product growth potential over the next five years has slipped to 6.2%, from an earlier projection of up to 7%, following a crisis in India’s shadow banking sector and the outbreak of Covid-19, the mission chief, Nada Choueiri, said in an interview Wednesday.

Faster expansion is possible “if there are reforms in the financial sector