IMF Chief says India will be ‘key growth engine’
(MENAFN) International Monetary Fund (IMF) Managing Director Kristalina Georgieva has described India as a “key growth engine” for the world economy, highlighting its rising economic influence. She made the remarks on Monday during the IMF’s semi-annual gathering of finance ministers and central bank governors.
“Global growth patterns have been changing over the years, notably with China decelerating steadily while India develops into a key growth engine,” Georgieva said. The IMF projects India’s GDP will expand by 6.5% in both 2025 and 2026.
The IMF chief praised India’s “bold economic and structural reforms,” citing the overhaul of direct and indirect tax laws, widespread adoption of digital payments, and implementation of a digital social identity framework.
She also noted that developing economies face challenges from persistent debt and trade tensions, including the 50% tariffs imposed by the US, which are estimated to reduce India’s GDP growth by 0.8%.
Last month, India lowered consumption taxes on most household items to support domestic demand and counter the impact of US tariffs ahead of the country’s annual festive season, demonstrating its proactive economic policy approach.
Georgieva’s comments underscore India’s growing role as a driver of global growth amid shifting economic patterns and rising uncertainties in international trade.
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