India needs another round of reforms, says OECD

Paris-based think-tank the Organisation for Economic Cooperation and Development (OECD) has said India needs another round of reforms for better gross domestic product (GDP) growth and rid itself of unnecessary regulations to reduce corruption.

India's growth rate slipped to decade's low of 5 per cent in 2012-13. In the current financial year, it is expected to improve to 6.1-6.7 per cent. The Reserve Bank of India (RBI), however, expects the growth to be 5.7 per cent.

"Our basic view is that India needs another round of reforms," OECD Deputy Secretary General Richard Boucher said.

Asked as to what India could do for improved economic growth, Boucher said: "India needs to do things to increase government efficiency, smoothing the way for projects, reduce regulatory burden on companies and open up some more to competition. So, we think that another round of reforms is necessary."

Referring to the issue of corruption, he said: "One thing that reduces opportunities for corruption is to get rid of unnecessary regulations as this opens up the economy and also means that there are fewer opportunities for somebody to ask for a bribe."

Besides, e-governance, fast green clearance for projects and better procurement systems lead to quicker, smoother and transparent working system, he said, adding that there are some other reforms underway like implementation of GST.

"It will bring much broader benefits than opening up one specific sector. We are starting now the next economic survey of India which will come out next year. We have had some of the initial discussions and will have much more thorough discussion that will be coming out next year," Boucher added.

Appreciating government's decision to open up FDI in multi-brand retail, he said: "It has a lot of benefits - for farmers, consumers, supply chains and better pricing mechanism. I think that is very important."