According to IMF chief Kristalina Georgieva, India’s bold policies are validating its economic vision and quieting doubters

IMF Chief Hails India as Key Engine of Global Growth Amid Slowing World Economy

International Monetary Fund (IMF) Managing Director Kristalina Georgieva has described India as a pivotal force driving global economic expansion, even as worldwide growth remains below pre-pandemic levels.

“Global growth is projected at around 3 percent over the medium term — down from 3.7 percent before the pandemic. The global growth landscape has been evolving, with China’s pace slowing steadily while India emerges as a primary engine of expansion,” Georgieva noted ahead of the upcoming IMF–World Bank Annual Meetings in Washington.

She highlighted India’s sweeping structural reforms, especially its nationwide digital identity initiative, as an example of successful innovation. “I’m a big admirer of India because of the boldness of its reforms. For instance, many said large-scale digital IDs couldn’t work — India proved them wrong,” she said.

The IMF chief emphasized that, while the global economy has managed to withstand recent disruptions — from policy shifts to tariff tensions — new, untested pressures persist. “All indicators suggest that the world economy has endured multiple shocks relatively well,” Georgieva observed, attributing this resilience to stronger policy frameworks, private sector adaptability, and improved financial conditions.

Despite a recent drop in U.S. tariffs, from 23 percent in April to 17.5 percent, Georgieva cautioned that their full consequences have yet to be seen. “The U.S. effective tariff rate — roughly 10 percent — remains significantly higher than global averages. The complete impact of these tariffs is still unfolding,” she said.

Underscoring India’s growing economic significance, the World Bank this week raised its FY26 GDP growth forecast for India to 6.5 percent, up from 6.3 percent earlier. India’s economy also grew at a five-quarter high of 7.8 percent in the April–June period.

Reserve Bank of India Governor Sanjay Malhotra similarly revised India’s 2025–26 GDP growth projection to 6.8 percent, citing the momentum from ongoing structural reforms such as the Goods and Services Tax (GST) streamlining, which are expected to strengthen the economy against external headwinds.