India will continue to drive global growth: IMF Executive Director

Regarding India's standing in the global economy, Subramaniam expressed confidence that India will continue to lead in driving global growth

April 17, 2024

India's productivity improvements, particularly post-2014, which have contributed to sustaining high growth rates

India's GDP registered a robust growth of 8.4% in the October-December quarter of the financial year 2023-24, maintaining its position as the fastest-growing major economy

Subramaniam praised India's digital infrastructure as a model for the Global South, emphasizing its widespread use in daily transactions

He noted that while uncertainties exist, the direct impact on the global economy is expected to be lower compared to other geopolitical conflicts

Krishnamurthy V Subramaniam, the Executive Director of the International Monetary Fund (IMF), emphasized India’s role as a key driver for global growth in the coming years. He highlighted India’s remarkable growth trajectory, consistently surpassing 7% even amidst the challenges posed by the COVID-19 pandemic. Subramaniam predicted an 8% growth for India in the fourth quarter, which he deemed commendable given the prevailing global economic conditions.

Regarding India’s standing in the global economy, Subramaniam expressed confidence that India will continue to lead in driving global growth. He pointed out that India has consistently maintained growth rates above 7%, with projections indicating sustained growth above this threshold throughout the current decade. The IMF has revised its growth projection for India in 2024 to 7.8%, reflecting the country’s overall growth momentum.

Reflecting on India’s economic performance in IMF meetings, Subramaniam noted India’s consistent growth since the pandemic, citing growth rates of 9.7%, 8.2%, 8.1%, and 8.4% in successive quarters. He emphasized India’s productivity improvements, particularly post-2014, which have contributed to sustaining high growth rates.

India’s GDP registered a robust growth of 8.4% in the October-December quarter of the financial year 2023-24, maintaining its position as the fastest-growing major economy. Subramaniam addressed critics’ concerns about India’s GDP growth, citing the opinions of statistical experts who affirmed the credibility of India’s GDP numbers.

Highlighting India’s efforts to address income inequality, Subramaniam referenced recent consumption surveys indicating significant declines in poverty and inequality. He discussed the decline in the Gini coefficient, indicating reduced inequality in both urban and rural areas.

Subramaniam praised India’s digital infrastructure as a model for the Global South, emphasizing its widespread use in daily transactions. He underscored the importance of India’s digital infrastructure as a public good and expressed India’s willingness to share its knowledge with other nations.

Addressing concerns about geopolitical tensions in West Asia, Subramaniam expressed cautious optimism about the global economic outlook. He noted that while uncertainties exist, the direct impact on the global economy is expected to be lower compared to other geopolitical conflicts.

Source: Economic Times

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