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IMF Chief Reveals: India's Bold Reforms Fuel Global Economic Growth

The International Monetary Fund (IMF) has praised India's remarkable economic reforms and growth potential. IMF Managing Director Kristalina Georgieva highlighted the country's bold approach to digital infrastructure and economic transformation. The IMF has revised India's growth projection to 6.6% for 2025, acknowledging its strong first-quarter performance. Georgieva also encouraged India to further integrate its trade relations with global partners.

Key Points: IMF Georgieva Praises India's Economic Reforms Global Impact

  • IMF raises India's growth projection to 6.6% for 2025
  • Significant reforms in tax, digital, and infrastructure sectors
  • Strong economic performance in April-July quarter
  • Recommendation to increase trade integration with global partners
2 min read

IMF chief hails India's 'very significant' reforms, says it 'substantially' fuels global growth

IMF's Kristalina Georgieva highlights India's significant economic reforms, growth potential, and substantial contribution to global economic landscape.

"I'm very big on India because of the boldness with which they do things that others are telling them...not possible. - Kristalina Georgieva, IMF Managing Director"

Washington, Oct 16

The International Monetary Fund (IMF) Managing Director Kristalina Georgieva said on Thursday that India has pursued “very significant reforms” in its economy and the country “substantially” contributes to global growth.

While addressing a press conference on the sidelines of the annual IMF-World Bank meetings in Washington, Georgieva listed India's reform efforts in multiple sectors.

"India is one of the fastest-growing economies, and given its size, it contributes to global growth substantially. India is where it is because it has pursued very significant reforms, tax reform, investing in infrastructure, digital infrastructure, but also road connectivity in the country, and that has injected this growth potential," she added.

The IMF on Tuesday raised India's growth projection to 6.6 per cent, an upward swing of 0.2 percentage points, in its latest Global Economic Outlook report.

According to the report, India's strong growth in the first quarter of 2025 is "offsetting" the US tariff increase on its imports to the country.

"In India, growth is projected to be 6.6 per cent in 2025... Compared with the July WEO update, this is an upward revision for 2025, with carryover from a strong first quarter more than offsetting the increase in the US effective tariff rate on imports from India since July," the report said.

The Indian economy grew at a faster rate of 7.8 per cent in its April-July quarter, beating all expectations.

On Monday, Georgieva called India's growth journey "impressive," and lauded the government for policy and tax reforms.

"I'm very big on India because of the boldness with which they do things that others are telling them...not possible. For example, digital identity. Everybody was saying you cannot have everybody with digital ID...they have proven them wrong," she added.

On Thursday, Georgieva advised the country to "aim for higher degree of trade integration with partners."

"India has still maintained some barriers to trade. There are tariffs that India imposes, there are some restrictions, and it is good to think about - where do you want to go? Do we want to go in a direction of maintaining and increasing these restrictions, or we want to go the other way, integrate? And if I take the relations with the EU, the signal seems to be, yes, we want to trade with others," she added.

She also said that New Delhi should continue "doing what has worked for it...pursue reforms."

- IANS

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Reader Comments

R
Rohit P
While the growth numbers are impressive, I hope this prosperity reaches the common man. Still seeing many small businesses struggling with compliance and regulations. The reforms need to percolate down to grassroots level.
A
Arjun K
Aadhaar and digital infrastructure have truly transformed how we interact with government services. From filing taxes to banking - everything is so much more efficient now. Proud moment for India! ✨
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Sarah B
As someone working in international trade, I appreciate IMF's balanced view. While praising reforms, they rightly pointed out trade barriers. India needs more FTAs and better integration with global markets to sustain this growth.
V
Vikram M
The road connectivity improvements are visible everywhere! Highway construction has created so many jobs and reduced travel time significantly. Infrastructure push is definitely paying off. 🛣️
K
Kavya N
‍♀️ Growing at 7.8% despite global challenges is remarkable! But let's not forget about inflation control and job creation for youth. The real test is whether this growth translates into better quality of life for all Indians.

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