No Reason Why India Can't Resume 8 Or 9 Per Cent Growth: IMF

Direct benefit transfer, using cash transfers to provide the subsidies and the food security act are going to be a way to move in that direction, he added.

"Finally, from an infrastructure standpoint, a lot of the infrastructure will have to be public infrastructure," he said.

Cashin also said, "We certainly see India's near-term growth has improved, and the balance of risks is now more favorable in the economy. Helped by increased political certainty, some good policy actions, and better business confidence."

"In terms of risks we see the main external risk to India being from a resumption of global financial market volatility.

But we also recognise that India is much better positioned to deal with such volatility than it was in the middle of 2013.
The current account deficit is much smaller now, and India has bulked up on reserves which they can certainly use to smooth consumption in the presence of such shocks," Cashin said.

"On the domestic side, we still see weaknesses in the public sector banks in terms of NPLs and so on. Also, corporate balance sheets, given the amount of external borrowing, could also pose risks to the economy," he said.
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