There is an urgent need to increase formal woman labour participation as India continues with product and market reforms, the International Monetary Fund has noted.

Ken Kang, Deputy Director of Asia and Pacific Department at the IMF, said he was happy with the progress made by India in recent years as far as economic reforms are concerned.

"The recent implementation of the Goods and Services Tax (GST) is a major reform of the India tax system. It will enhance the efficiency of intra Indian movements of goods and services, help create a common national market, as well as help boost jobs and growth," he said in response to a question on India's role in the development and growth of the Indo-Pacific region. The introduction of a flexible policy targeting inflation and also a mandatory monetary policy shall help strengthen the monetary policy framework, Kang remarked.

The government has recently announced a major recapitalisation plan for the public sector banks to improve the situation on non-performing assets, as well as made significant improvements through the insolvency and bankruptcy law.

"We expect and hope that the reform momentum continues. Looking ahead there are important policy priorities. There is need to continue improvements in product and labour market reforms with a focus on increasing formal female labour participation, to improve the business environment, and reduce complex regulations, but also to address supply bottlenecks, particularly in the agricultural sector and distribution networks," Kang added.