OECD urges India to encourage structural reforms

OECD urges India to encourage structural reforms

The Organisation for Economic Co-operation and Development on Tuesday urged India to encourage structural reforms in the financial sector by reducing government ownership of banks and insurance firms and liberalising foreign investment by removing remaining restrictions.

The OECD charted country-specific structural policy priorities in its latest report, Go for growth 2023, to improve growth fundamentals and pave the way for successful green and digital transitions. The recommendations address four key policy areas, such as enhancing the design of social support programs, lifting potential growth by removing obstacles to effective resource utilisation, securing faster progress towards decarbonization, and making digital transformation a key driver of productivity growth.

The OECD said that India's recent reforms reduced government participation in the finance sector, allowing greater foreign participation in insurance, defence, petroleum and natural gas, and telecoms.