India must capture all segments of financial market to fuel growth: IMF

Tobias Adrian, Director of the Monetary and Capital Markets Department of the International Monetary Fund.

India is on the right track and is innovating on the policy side, including on digital identity and payments, but it also needs to capture all the segments of the financial market and institutions to make sure that every piece fits together like a puzzle to fuel growth in the country, according to a top IMF official.

..Balance sheets can be better managed, Non-Performing Loans (NPLs) can be better managed,” Tobias Adrian, Director of the Monetary and Capital Markets Department of the International Monetary Fund (IMF) told PTI in an interview.

The non-bank financial system can be better seen, and capital markets have to be deepened and made more robust, he said during the last week’s annual Spring meeting of the IMF and the World Bank.

I think no country is laying like India in that respect,” he said, noting that the country needs to capture all the segments of the financial market and financial institutions to make sure that every piece fits together like a puzzle to fuel growth in India.

“So, we have been very keen on measures that were used in building flexibility to stretch out what banks could do and what other lenders could do in order to support the borrowers to get them through the pandemic so that they can resume interest payments and principal payments once the crisis is over,” Mr Adrian said.