Tax reforms key to FDI: IMF chief

India's reform agenda, particularly in tax reforms, trade liberalisation and investment in infrastructure and education, will enable it to attract more investments, said visiting International Monetary Fund Chief Rodrigo de Rato.

"The reform agenda will make India more attractive to investment, both domestic and international. We think that the reform agenda that the government is putting forward will allow India to benefit from these opportunities," Rato said after a meeting with Planning Commission Deputy Chairman Montek Singh Ahluwalia. He met Prime Minister Manmohan Singh earlier in the day.

"This is a good moment for the Indian economy not only because of the past performance or this year's performance, but because the future has great opportunities not only for keeping up growth but also for ensuring that growth is shared by a larger population. IMF is certainly willing to collaborate and advise the government in whatever issues the government feels that we can make a difference," he added.

Ahluwalia appraised Rato about the infrastructure deficit in the country. "Ideally if we get a lot of money through private sector without increasing fiscal deficit, that would be good, but for that we have to take care of regulatory problems, which is going to take time," Ahluwalia told reporters after the meeting.

Putting in place a regulatory mechanism would take about five years, he said adding "the question is whether we wait or kick-start the process by some public sector financing of infrastructure".

Often regulatory weakness could be offset by public-private partnerships, he said.