India Must Stick to its Reform Agenda: Jacob Lew

Davos: India remains a bright spot of economic growth, but it will have to stick to its reform agenda and like any other political system, a lot will depend on the government of the day to carry forward the reforms, US Treasury Secretary Jacob Lew said on Thursday.

Speaking on global economic outlook here at the WEF Annual Meeting, Lew said it remains to be seen whether China sticks to its reform agenda as it is currently in a very difficult condition.

"We have seen a lot of disruptions low oil prices have been causing across the world... I have been following China very closely. 

China is in a difficult condition, they are in transition to a consumer-driven economy. 

"Question really is if they can reach a sustainable growth rate. Question is will China stick to its reform policy? I know it has been bumpy days in markets. Obviously, markets are significant, but you will have to look at underlying terms on a fundamental basis," the secretary said.

On a question about India being another super highway, just like China, which have got 'speed bumps', Lew said the policies do not get executed without politics. 

 "It (India) is one of the bright spots of growth and they need to stick to its reform agenda. It will be very telling a  year from now, if China has stuck to its reform agenda... I think in any of the political system, a lot depends on the government," he added.