WASHINGTON– International Monetary Fund (IMF) Managing Director Kristalina Georgieva has praised India’s strong economic momentum, calling the country a major driver of global growth amid shifting international economic dynamics.
“Global growth is forecast at roughly 3 percent over the medium term—down from 3.7 percent before the pandemic. Global growth patterns have been changing over the years, notably with China decelerating steadily while India develops into a key growth engine,” Georgieva said ahead of the IMF–World Bank annual meetings scheduled next week in Washington.
She noted that decisive policy actions, private-sector adaptability, and milder-than-expected effects from U.S. tariffs have supported global resilience. However, Georgieva cautioned that “it is too early to heave a big sigh of relief, because global resilience has not yet been fully tested.”
“All signs point to a world economy that has generally withstood acute strains from multiple shocks,” she said, highlighting improved policy fundamentals, lower-than-expected tariffs, and supportive financial conditions. The IMF chief noted that while the average U.S. tariff rate has dropped from 23 percent in April to 17.5 percent, the effective rate of around 10 percent remains “far above” global norms, with the full economic impact still unfolding.
Her comments come as global financial institutions continue to express confidence in India’s growth outlook. The World Bank this week raised India’s FY26 growth forecast to 6.5 percent from 6.3 percent, citing strong domestic demand. India’s GDP rose 7.8 percent in the April–June quarter, its fastest pace in five quarters.
The Reserve Bank of India (RBI) also upgraded its growth projection for 2025–26 to 6.8 percent from 6.5 percent, citing reforms such as the streamlining of the Goods and Services Tax (GST) and a revival in manufacturing and services. RBI Governor Sanjay Malhotra said the economy remains resilient, supported by robust rural consumption, strong agricultural output, and a gradual revival in urban demand. (Source: IANS)
