Indian Economy Will Contribute 15% Of Global Growth In 2023, Says IMF MD Kristalina Georgieva further noted that India continues to be a shining light at a time when the IMF expects 2023 to be challenging due to a slowdown in global GDP from 3.4% last year to 2.9% in 2023
By Teena Jose •
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IMF or the International Monetary Fund's Managing Director Kristalina Georgieva on Wednesday said that the Indian economy will alone contribute 15% of the global growth this year, as the country continues to remain a relative "bright spot" in the world economy, according to a PTI report.
"India's performance has been quite impressive. For FY 2023/24 (April 2023 to March 2024) we project 6.1 per cent, a bit of slow down like the rest of the world economy, but way above the global average. And in that way, India is providing about 15% of global growth in 2023," IMF MD told PTI in an interview.
India continues to be a shining light at a time when the IMF expects 2023 to be challenging due to a slowdown in global GDP from 3.4% last year to 2.9% in 2023, she further noted.
According to the report, Georgieva elaborated her viewpoint on calling India a bright spot. She reportedly reasoned that one, the country has done really well to turn the digitalization that has been already moving quite well into a major driver of overcoming the impact of the pandemic and creating opportunities for growth and jobs. Second, because India's fiscal policy has been responsive to economic conditions. We have seen the new budget presented, and it signals the commitment to fiscal consolidation, while at the same time provides significant financing for capital investments. And three, because India didn't shy away from learning the lessons from the pandemic and to implement very strong policies to overcome what has been really a difficult time for a number of months."
Furthermore, the IMF MD revealed that she is impressed by two things in India's annual budget presented by Union Finance Minister Nirmala Sitaraman on 1 February. "Overall, a very, very thoughtful work was done by the Minister of Finance," she said.
The first one is how much care is placed on balancing development needs with fiscal responsibility in India. So, you have a budget that is realistic on the revenue side with a focus on growth-supporting spending. And secondly, the investment in capital expenditures, that is there to provide the long-term foundation for growth," she said as per the PTI report.
