IMF Lists India Among Star Performers; Predicts Will Contribute 16% To Global Growth

The International Monetary Fund (IMF) has commended Indian authorities for their robust economic performance, stating that India is likely to continue growing at a strong rate and has the potential for even faster and more sustainable growth by implementing comprehensive structural reforms.

IMF noted that India is projected to contribute over 16 per cent to global growth, making it one of the fastest-growing large emerging markets.

Nada Choueiri, the Mission of India at IMF, referred to India as a star performer, emphasizing its robust growth compared to peer countries. She highlighted India’s contribution of more than 16 percent to global growth in the current projections, making it a significant player on the global economic stage.

Choueiri suggested that a strong government push in logistics and infrastructure could help the economy navigate global headwinds. She praised India’s focus on digitalisation, positioning the country for future growth and productivity.

Choueiri emphasised the potential for stronger growth rates in India due to its large and young population, provided it is harnessed through structural reforms. She underscored the importance of political stability in driving investment and growth, noting that transparency in politics and business policies plays a crucial role in creating an environment conducive to investment.

During the IMF’s annual Article IV Consultation with India, the South Asian economy was recognised as one of the fastest-growing major economies globally, supported by prudent macroeconomic policies. The report highlighted India’s significant economic rebound post-COVID-19 and its role as a key driver of worldwide growth. While inflation rates experienced a notable increase in FY23, the IMF mentioned that they have stabilized on average, though still exhibiting some unpredictability.

The IMF report acknowledged that India’s GDP growth reached 7.2 per cent in FY23, representing a moderation from the 9.1 per cent in FY22. The growth was attributed to strong household consumption driven by pent-up demand and robust investment, particularly through high levels of public capital expenditure.