India’s economic growth has been on a consistent rise expressed Krishnamurthy V Subramanian, the Executive Director of the International Monetary Fund (IMF). In an interview with ANI on Tuesday, Subramaniam highlighted India’s significant role as a driver of global growth. According to him, India’s economic ambit has seen an upward trend amidst the challenegs posedby the COVID-19 pandemic.
Reinstating the incline, he highlighted that India had sustained growth rates of over 7 percent since the onset of the pandemic and emphasized the projection for the fourth quarter at 8 percent, as ‘good’ considering the prevailing global economic conditions.
“In the foreseeable future, India will continue to be the driver for global growth,” Subramaniam affirmed. “I expect growth in India to consistently surpass 7 percent throughout this decade.”
Quoting the IMF’s revised growth projection of 7.8 percent for India in 2024, he stressed that this forecast significantly reflects the country’s overall economic expansion.
Addressing concerns about the Indian economy, particularly amid IMF meetings in the US, Subramaniam highlighted India’s robust performance, with GDP growth rates of 8.2 percent, 8.1 percent, and 8.4 percent in the first three quarters of the fiscal year.
With regards to the critiques of India’s economic data methodology, he also mentioned the expert opinions from former chief statisticians who supported the credibility of India’s GDP numbers, dismissing unwarranted skepticism.
Elaborating further on India’s growth in gross value-added versus GDP, he indicated alignment in most quarters and attributed discrepancies to tax-related factors.
Subramaniam shared the reference to the recent consumption surveys demonstarting stark decline in poverty and inequality metrics to respond to economist Thomas Piketty’s ob observations on income inequality in India.
Emphasizing Prime Minister Narendra Modi’s willingness to expand India’s digital knowledge globally, he appreciated the country’s digital infrastructure initiatives. He even highlighted the widespread adoption of digital payments, describing the nation’s approach as a valuable lesson for the Global South in public infrastructure development.
On geopolitical concerns, especially amid the West Asia crisis, Subramaniam expressed cautious optimism regarding global economic projections, acknowledging the evolving situation’s potential impact on regional stability.
Subramianiam applauded India’s economic performance comparing it to teh neighboring countries like Bangaladesh and Sri Lanka, stating that India surlely has made its position very stong within the region.
While concluding, Subramaniam’s statements reinforce India’s critical role in driving global economic growth, underlining the nation’s resilience and promising prospects despite ongoing global uncertainties.