3 min read.Updated: 17 Mar 2016, 01:40 AM ISTLivemint
Economic growth will depend on policy support and movement on reforms
With the much-awaited Union budget out of the way, the focus will now shift to implementation and other impending policy challenges in the economy. The International Monetary Fund (IMF), in its report on India released on Wednesday, noted that although the balance of risk has improved, it still remains tilted towards the downside. There are risks on both domestic and external fronts that can affect India’s growth prospects. On the external side, these could emanate from financial market volatility due to the slowdown and large capital outflows from China, or an unexpected change in US monetary policy, which is on the course of normalization. On the domestic side, excessively leveraged corporate balance sheets and their impact on banks in terms of rising non-performing assets (NPAs) can pose a risk to economic growth.