Expressing the need for necessary reforms to create a better business environment and spur growth, the World Bank President Jim Young Kim has asserted that the private sector strongly feels that India is a difficult place to do business due to many regulations. Global investors like pension funds, sovereign wealth funds, and even private capital want to invest in countries like India, but they have stalled their investments due to subdued business environment amid fears over risks involved in making investments for longer period of time.
World Bank President Jim Young Kim further asserted that in order to boost the private sector growth, it has become imperative for India to make government regulations clearer and more amenable and strategically make investments in infrastructure to attract more investments. Referring to measures to end poverty in country, the President emphasized that India, which accounted for nearly a third of the people living in poverty globally, needed to complement efforts to enhance growth with policies that allocated more resources to the extreme poor.
Meanwhile, J Y Kim praised India for its record improvement in the quality of healthcare services and improving quality of education. The government is also taking measures to simplify the regulation to improve the business sentiments in the country, he added. The World Bank projected Indian economic growth rate at 5.7 percent for 2015 on the back of a more competitive exchange rate and many large investments going forward. At present, Indian economy is struggling with slowdown and its growth slowed down to a decade low at 4.5 percent in FY13 and 4.6 percent during the first three quarter of FY14.