The International  Monetary Fund (IMF) said India’s investment efficiency is at a high level of 35 per cent of GDP over the medium term, comparable to the Asian countries just before the crisis, and maintenance of this rate would need meeting some challenges.

It  said that issues to be grappled with include the large share of state-owned banks, high statutory liquidity requirements that compel banks to set aside a quarter of their deposits for government securities, high lending requirements  to priority sector and underdeveloped government and corporate bond markets IMF also projected eight p c GDP growth for India in the medium term but said it would require policies to foster improvements in labour market conditions for better job creation.