Public Sector Deficit Must Be Slashed: Camdessus

He said India's combined central, state and public sector deficit amounted to an unsustainable level of over 9 per cent of the country's gross domestic product.

This jeopardises sustainable high growth. If it continues, you see the risk of external vulnerabilities opening, he said.

Camdessus, describing the external environment as favourable for India, also urged continued structural reform as critical for the country's economic prosperity.

Ticking off the list of things to be done, he said India should reduce or eliminate quantitative restrictions on the import of consumer goods, continue financial and public sector reform, and open the infrastructure sector more broadly to the private sector.