India’s high growth rate positive for world, says IMF Managing Director

A high growth rate for India, as projected in the latest World Economic Outlook, is not only healthy for the country but also positive news for the world, Managing Director of the International Monetary Fund Kristalina Georgieva has said.

The IMF, early this week, projected a “fairly robust” growth of 8.2 per cent for India in 2022, making it the fastest-growing major economy in the world, almost twice faster than China’s 4.4 per cent.

The global growth has been projected at 3.6 per cent in 2022, down from 6.1 per cent in 2021.

“India is one of the economies that are growing at a high rate. Even with the small downgrade, growth is projected for this year to be 8.2 percent. Healthy for India, but also positive in a world where growth slowdown is creating a major problem,” Georgieva told reporters at a news conference here on the sidelines of the annual spring meeting of the IMF and the World Bank on Wednesday.

On Monday, she met the visiting Indian Finance Minister Nirmala Sitharaman.

She said India already plays a very important international role.

“By exporting vaccines during the pandemic, it has delivered a global public good,” she said in response to a question.

“India is also committed to lead in renewable energy with the International Solar Alliance, another area where the world needs more determination, more progress,” she said.

“And, it is a country that is on the frontline of digital currencies, especially central bank digital currency and how it handles a reduction of risk from crypto assets for the Indian people and businesses,” Georgieva said.

Noting that next year India is going to be the Chair of the G20, Georgieva said she very much looks forward to working with the country on many key global cooperation issues, including the 16th General Review of Quotas that should be finalised by the end of next year.