IMF Chief praises India’s bold reforms, calls it a key growth engine amid China’s slowdown, and urges G20 to focus on global debt issues.
In an address on Tuesday, IMF chief Kristalina Georgieva praised India, praising its “bold” reforms in a number of areas. To support her argument, she mentioned a number of measures, such as the introduction of Aadhaar, the expansion of a vast digital payment ecosystem, and the most recent reorganization of the GST slabs. Georgieva also referred to India as a “key growth engine” and noted China’s gradual slowdown. The country is expected to grow by 7% this year and 6.1% in 2026, according to IMF projections.
Over the longer run, global growth is expected to be about 3%, down from 3.7% before to the epidemic. Over time, global growth trends have been shifting, particularly with China gradually slowing down and India emerging as a major growth engine, she said.
“Very strong on India due to…”
Speaking at the annual IMF and World Bank meetings in Washington, DC, on Monday, Georgieva praised a number of recent reforms implemented by the Indian government. She praised the country’s substantial structural and economic reforms, focusing in particular on tax laws, the expansive UPI digital payments system, and the recent streamlining of the Goods and Services Tax.
Because of the audacity of their changes, India has my full support. For instance, everyone informed India that mass adoption of digital identities was not feasible. However, India disproved them, according to reports.
IMF to continue urging G20 to focus on debt challenges
Georgieva stated on Monday that the IMF will keep pressing the Group of 20 large countries to concentrate on the ongoing debt problems that developing nations face.
Speaking at the IMF and World Bank’s annual meetings in Washington, Georgieva stated that although the effects of U.S. tariffs had not been as severe as anticipated, there was still a lot of uncertainty.
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“Debt is high, growth is sluggish, and the risks of a financial crisis are ever-present.” She stated that nations must be “much, much, much more focused on bringing debt levels down,” but they are there.
By 2029, the world’s public debt is predicted to surpass 100% of GDP, Georgieva stated last week.
Georgieva stated that in addition to trying to keep debt issues on the G20 agenda, the IMF was collaborating closely with the World Bank to assist nations who might not have unmanageable debt levels but were experiencing serious liquidity issues.