NEW DELHI: India has taken a good step with the recent cut in the corporate tax rate that will help add to growth, World Bank president said on Saturday as he called for more reforms to ensure India becomes more competitive in the global market place.
“Trade uncertainty is a drag on global growth along with other factors like Brexit-…What is to be done is better programmes, better growth programmes, country by country,” David Malpass, president of the World Bank group said as he complimented India’s reform measures.
He said India is being affected by the global environment and has slowed from the faster growth rate in earlier years. “My prescription or suggestions is that there be openness to reforms and innovation and to improvements in government structures that allow for faster growth,” he said.
He said India has a very good platform for doing that because of the experience that India has with technology and knowledge and because the country had made several important reforms in the last few years that can still pay off. Malpass complimented India on moving up 14 places to 63rd position in the Ease of Doing Business rankings but said there can be more progress on the land permitting process and enforcement of contracts.
“One area that could be improved is ensuring commercial courts are adequately resourced at the district level so that they can deliver judgements faster. This is an ability to enforce contracts in a practical way and also the possibility of a fast track commercial dispute resolution mechanism. This helps people to enter into contracts if they know that those contracts can be enforced,” said Malpass.
“With regard to land management. There are areas where there might be more progress going forward — digitisation of the land data and making the data readily available throughout India which would facilitate buying and selling of land,” he said.
Malpass, who met PM Narendra Modi earlier in the day also backed sound regulation for the non-banking finance companies and called for deepening and opening up of the capital markets and the bond markets as well as allowing the growth of the banking sector including the private sector. “PM Modi has a goal of a $5 trillion dollars economy. That is a powerful vision and the goal and will be assisted by innovations in the financial sector,” Malpass said. He also backed innovation and modernisation of data systems which can help policymakers.
Earlier he delivered the keynote address at the Niti Aayog lecture series. Modi, who is the chairman of Niti Aayog, was present in the audience to listen to the lecture. To build knowledge systems for states and the Centre, NITI Aayog announced the launch of “NITI lectures: Transforming India” in 2016.