India a ‘star performer’; expected to contribute over 16% to global growth: IMF
Author: BI Bureau
New Delhi: India has been recognized as a "star performer" by the International Monetary Fund (IMF), projecting a contribution of over 16% to global growth, according to a recent report. Despite facing global economic challenges, India's robust growth has positioned it as one of the fastest-growing major economies, supported by prudent macroeconomic policies.
Nada Choueiri, the Mission of India at IMF, emphasized India's positive trajectory, citing factors such as government initiatives to boost infrastructure and logistics investments, a large and growing population, and structural reforms, including digitalization. The IMF's annual Article IV consultation with India highlighted the country's resilience in rebounding from the pandemic, with moderated inflation, surpassed pre-pandemic employment levels, and the ongoing formalization of the informal sector.
While acknowledging India's economic strengths, the IMF report recommended a focus on replenishing fiscal buffers, ensuring price stability, maintaining financial stability, and accelerating inclusive growth. The report also touched on the upcoming general elections in April 2024, underscoring the importance of political stability and a clear policy environment for sustained economic growth.
The IMF stressed that if comprehensive reforms are implemented, India has the potential for higher growth by leveraging its abundant labor force and human capital. The report highlighted the need for concerted efforts in education, skilling, and increasing female labor force participation to maximize India's demographic advantages.
In conclusion, India's economic reforms in key sectors such as digitization and infrastructure have positioned it as a star performer, contributing significantly to global growth. The IMF's positive assessment underscores the importance of continued structural reforms and policy measures to harness India's economic potential for sustained growth in the future. /BI/
