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The private sector strongly felt India was a difficult place to do business in due to many regulations, World Bank President Jim Young Kim told journalists on Thursday at a round table with media representatives from eight countries, calling for necessary reforms to create a better environment and spur growth.
Media representatives from India, China, Mexico, Brazil, Indonesia, Bangladesh, South Africa and Tunisia took part in the round table.
“This is the direct impression that many private sector players have and we know very well that the Indian government, especially the leadership, knows this very well and they’re moving in a direction to try to improve that,” Kim said during the round table, held on the sidelines of the annual spring meeting of the International Monetary Fund and the World Bank.
Kim was highly appreciative of the top Indian leadership, including Prime Minister Manmohan Singh and Finance Minister P Chidambaram.
He was also appreciative of Reserve Bank Governor Raghuram Rajan. Kim said all of them were well aware of the difficulties and what needed to be done to address such challenges.
“Central bank (RBI) governor Rajan has already announced some financial sector reforms that I think (they) are very promising. The thing that strikes me is that when I speak wit,h for example, Finance Minister Chidambaram and, you know, Prime Minister Singh, they know exactly what needs to be done,” he said.
“We know, for example, there have to be reform in terms of government regulations so that the private sector can really take off,” the World Bank president said in response to a question.
Noting India was very focused on improving its educational system, he said, one of the things “we know now” was that investing in human beings, improving health outcomes and investing in education, was extremely important for economic growth.
India understood that and was trying to move in that direction, he said.
Kim said he was working with the Indian government on ideas to improve the health care system.
“They know they need to make progress in those areas. But I think there is a lot India can do to improve its business environment,” the World Bank president asserted.
