GST to move up Indian growth above 8 per cent: IMF

In an assertive statement, the IMF appreciated the reformative disposition of the government, stating that the soon to be implemented Goods and Services Tax will enable India to surpass the eight per cent mark in medium term growth, with greater ease in production and movement of commodities.

The fastest growing emerging market economy of the world- India, according to the IMF will grow at a fast pace of 6.8 per cent in FY17 and 7.2 per cent in FY18 with the support of lower global oil prices. IMF largely contributed the economy's growth to the fitting fiscal and monetary policy decisions of the government, moving the economy towards greater stability.

Deeming the bad banking sector health and bad loans issue as the most damaging factor to the economic growth of the country, the IMF observed that the Indian economy must further focus on labour market reforms, generation of better quality jobs, higher female labour participation, greater efficiency in social spending and subsidy through Aadhaar. Whilst also adding that the economy needs to raise agricultural productivity, in order to raise the supply of high value food, enable farmers to generate greater returns and lower the food inflation pressures.

The GST is likely to be implemented from July 1, 2017.