India needs to get rid of corruption and remove bottlenecks in bureaucracy to get its mojo back, International Monetary Fund (IMF) managing director Christine Lagarde told NDTV's Prannoy Roy on the sidelines of the World Economic Forum in Davos today.
The IMF chief said fighting corruption is important in all the countries where it exists.
Speaking on the Indian economy and its fight against rising prices, Ms Lagarde said, "Inflation is a reality for most emerging markets, especially India."
She said the Reserve Bank of India or RBI's policy of targeting inflation with its monetary policies was a "good strategy''.
India has been struggling with stubbornly high inflation for the past three years, because of which domestic consumption has slowed down. For central bank RBI, headed by Raghuram Rajan, it has been a tightrope walk between high inflation and slowing growth.
Foreign investors have kept away from the country because of the slower growth and a perceived "policy paralysis" on the Congress-led UPA government's part. The country's economy grew at a decade-low 5 per cent in the fiscal year ended March 2013.
The IMF chief stressed that India needs to have investor-friendly policies and engage with investors.
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