India needs another round of reforms for improved growth: OECD

India needs another round of reforms for better GDP growth and rid itself of unnecessary regulations to reduce corruption, Paris-based think-tank OECD has said.

 

"Our basic view is that India needs another round of reforms," OECD Deputy Secretary General Richard Boucher told PTI in an interview.

 

He was here to participate in the World Economic Forum (WEF) on East Asia.

 

India's growth rate slipped to decade's low of 5% in 2012-13. In the current fiscal, it is expected to improve to 6.1-6.7%. The Reserve Bank, however, expects the growth to be 5.7% in the current fiscal.

 

Asked as to what India could do to have improved economic growth, Boucher said: "India needs to do things to increase government efficiency, smoothing the way for projects, reduce regulatory burden on companies and open up some more to competition. So, we think that another round of reforms is necessary."

 

Referring to the issue of corruption, he said, "One thing that reduces opportunities for corruption is to get rid of unnecessary regulations as this opens up the economy and also means that there are fewer opportunities for somebody to ask for a bribe."

 

Besides, e-governance, fast green clearance for projects and better procurement systems lead to quicker, smoother and transparent working system, he said, adding that there are some other reforms underway like implementation of GST.

 

"It will bring much broader benefits than opening up one specific sector. We are starting now the next economic survey of India which will come out next year. We have had some of the initial discussions and will have much more thorough discussion that will be coming out next year," Boucher added.

 

Appreciating government's decision to open up FDI in multi-brand retail, he said, "It has a lot of benefits - for farmers, consumers, supply chains and better pricing mechanism. I think that is very important.