IMF Expresses Confidence in India: Chief Kristalina Georgieva Says Country is Emerging as the World’s Growth Engine

New Delhi (The Uttam Hindu): India continues to strengthen its position among the world’s fastest-growing economies, earning recognition from the International Monetary Fund (IMF). Ahead of next week’s IMF-World Bank annual meetings in Washington, IMF Chief Kristalina Georgieva praised India’s economic progress, stating that the country is emerging as a major engine of global growth.

Georgieva highlighted that the global growth landscape has changed rapidly in recent years, and India has established itself as a resilient economy. “India’s bold economic policies have proved wrong all those who doubted the nation’s potential,” she said. Her remarks come at a time when global economic growth rates are still below pre-pandemic levels.

According to the IMF Chief, the medium-term global growth rate is expected to hover around 3 percent, lower than the pre-pandemic rate of 3.7 percent. While growth rates in economies such as China are slowing, India continues to advance steadily, emerging as a key engine of global growth.

Kristalina Georgieva also lauded India’s economic reforms, particularly the successful implementation of the nationwide digital identity system. “India has demonstrated that large-scale digital identity programs can be implemented successfully, even when previously considered impossible,” she said.

Commenting on U.S. tariff policies, Georgieva noted that despite recent policy changes and trade tensions, the global economy has withstood several shocks. However, she cautioned that uncertainties remain regarding the full impact of U.S. tariffs, which will become clearer over time.

Alongside the IMF, the World Bank has also expressed a positive outlook on India’s economic progress. The World Bank recently revised India’s GDP growth forecast for FY 2025-26 from 6.3 percent to 6.5 percent. In the current financial year, India’s GDP growth rate for the April-June quarter reached 7.8 percent, the highest in the last five quarters.