Clean up balance sheets of corporates, banks to rein in fiscal deficit: IMF

The International Monetary Fund (IMF) has suggested to India that it should clean up balance sheets of banks, non-banking financial companies, and corporates to rein in fiscal deficit.

In its external sector report, IMF also called upon India to strengthen the governance of public sector banks.

The Fund pegged the country’s current account deficit at 0.3 per cent of the gross domestic product (GDP) in the current fiscal year.

Improving the business climate, easing domestic supply bottlenecks, and liberalising trade and investment will be important to help attract foreign direct investment (FDI), boost the current account financing mix, and contain