Referring to the cabinet commitment on investment, the IMF

official said they will need to see whether this manages to reduce implementation times and get several of these infrastructure projects off the ground and to be completed in a speedy way. "Beyond this, there are important legislative changes that are necessary. Land acquisition and the GST in our view are the ones that are most likely to have a very important impact on growth. "But all these reforms are going to take some time, so that's one reason why we see growth fairly subdued by Indian standards for the next few years," Papi said. The IMF official said corruption seems to have an impact on the speed of approvals of projects. "This may not be all bad. More transparency, etc, requires more time and is a good thing, but over time what we want to see is that there is also an acceleration in project approval and also clarity in the sort of policy implementation," she said. Papi said capital inflows have strengthened in the last six months or so. "We have noticed that they've responded to domestic developments. There has also been an increase in response to global liquidity conditions. But in the last year or so we have not seen in India capital inflows that are creating problems from a monetary policy perspective," she said. "Indeed, the RBI has very seldom intervened by buying dollars in the last year or so. The few interventions that have taken place have been the other way around, so selling dollars," Papi said.