IMF lauds India's growth, says monetary policy "appropriate"

"(India's) growth has been impressive--9.7 per cent in 2006, 8.9 per cent in 2007 and we are viewing at 8.4 per cent in 2008. That is really an impressive growth pattern," IMF Managing Director Rodrigo de Rato said addressing a press conference in Washington ahead of the annual meetings of the International Monetary Fund and the Word Bank.

Asked whether he saw any chance of the Indian economy "overheating", de Rato said "We don't see that if monetary policy continues to behave as is behaving right now and independence is strengthened in monetary policy" .

"With inflation coming up a bit in 2007, we think the monetary responses by the (Reserve) Bank of India have been appropriate... the credibility of the monetary policy in India has become better and stronger and the steps of the liberalisation of the financial markets of India are probably the steps in the right direction," the top IMF official said.

The priorities for India down the road should be in keeping up with the drive towards further liberalisation like bridging major gaps in infrastructure, addressing the labour shortages in the skilled sector and opening up to foreign investment, he said.

De Rato noted that there has been flexible movement of Indian currency which is "good" for the country, adding that the confidence of investors in India is increasing. - DDNEWS