On Thursday, the International Monetary Fund (IMF) lauded India as “a bright spot in a dark horizon” owing to India’s fast-growing economy even in challenging times. India, according to IMF Managing Director Kristalina Georgieva, deserves to be called a bright spot on this otherwise dark horizon because it has been a fast-growing economy even during these difficult times. “Most importantly, this growth is backed by structural reforms,” Georgieva said at a media briefing when asked about her expectations from India’s G20 presidency next year.
The top IMF official also hailed India’s digital economy on the sidelines of annual meetings of the Board of Governors of the IMF and the World Bank Group (WBG) in Washington DC. “The digital identity that provides all services and support on the basis of “digital access” is the remarkable success of digitalization in India,” Georgieva said.
Georgieva also asserted that India will leave a mark in the areas of digitalization and digital money. “We know that we need regulation of cryptocurrencies, more attention is needed on cross border payments, we are proposing public investments in the cross border payment platform infrastructure,” she added.
IMF’s Managing Director speaking about renewable energy said, “India has really leapfrogged in terms of solar and other forms of renewable energy. So I am looking forward to next year and I am sure that it would make the people of India very proud.”
Earlier on Wednesday, Paolo Mauro, the Deputy Director of the Fiscal Affairs of India said that India’s digital cash transfer scheme and several other social welfare programs are a ‘logistical marvel’.
While addressing a Fiscal Monitor press conference, he asserted that there is a lot to learn from India. “From India, there is a lot to learn. If I look at the case of India, it is quite impressive,” he said.
Mauro underlined the sheer size of the country, saying it is a “logistical marvel” that several programs aimed at assisting low-income people reach hundreds of millions of people. He also highlighted that there are various welfare programs specially meant for women, the elderly, and farmers.
Notably, this praise for Indian economic growth comes as the country continues to maintain its position as the fastest-growing economy in the world despite lowered GDP growth projections.
“The outlook for India is for growth of 6.8 percent in 2022, a 0.6 percentage point downgrade since the July forecast, indicating a weaker-than-expected outturn in the second quarter (April-June) and more subdued external demand,” the IMF stated in the latest World Economic Outlook report.
The IMF projected 7.4 percent GDP growth for India in its July 2022 report. The IMF’s latest GDP growth projection for India is lower than the Reserve Bank of India’s (RBI) forecast of 7% for the fiscal year 2022-23.