IMF chief Kristalina Georgieva says India is proving doubters wrong with bold economic policies
Georgieva cited India’s structural reforms, particularly its nationwide digital identity rollout, as a bold success story. “I’m very big on India because of the boldness of their reforms. For example, everyone told India that digital IDs on a mass scale could not be done. India proved them wrong,” she said.
- Oct 13, 2025,
- Updated Oct 13, 2025 6:36 PM IST
International Monetary Fund (IMF) Managing Director Kristalina Georgieva has identified India as a pivotal driver of global economic momentum, even as global growth projections continue to slide from pre-pandemic levels.
“Global growth is forecast at roughly 3 per cent over the medium term — down from 3.7 per cent pre-pandemic. Global growth patterns have been changing over the years, notably with China decelerating steadily while India develops into a key growth engine,” Georgieva stated ahead of next week’s annual IMF-World Bank meetings in Washington.
Georgieva cited India’s structural reforms, particularly its nationwide digital identity rollout, as a bold success story. “I’m very big on India because of the boldness of their reforms. For example, everyone told India that digital IDs on a mass scale could not be done. India proved them wrong,” she said.
The IMF chief noted that while the global economy has largely weathered recent shocks — including policy shifts and tariff tensions — it still faces untested pressures. “All signs point to a world economy that has generally withstood acute strains from multiple shocks,” she said, crediting improved policy fundamentals, private sector adaptability, and more favorable financial conditions.
Despite a decline in US tariffs — from 23 per cent in April to 17.5 per cent currently — Georgieva warned that their full impact remains uncertain. “The US effective tariff rate of around 10 per cent remains far above the rest of the world. The full effect of those tariffs is still to unfold,” she said.
Reinforcing India’s rising economic profile, the World Bank on Tuesday revised its growth forecast for India’s FY26 GDP to 6.5 per cent, up from 6.3 per cent. Meanwhile, India’s GDP growth surged to a five-quarter high of 7.8 per cent in the April-June quarter.
Reserve Bank of India Governor Sanjay Malhotra also raised India’s 2025-26 GDP growth forecast to 6.8 per cent, citing the impact of growth-oriented structural reforms like the streamlining of the Goods and Services Tax (GST), which are expected to cushion against external challenges.
International Monetary Fund (IMF) Managing Director Kristalina Georgieva has identified India as a pivotal driver of global economic momentum, even as global growth projections continue to slide from pre-pandemic levels.
“Global growth is forecast at roughly 3 per cent over the medium term — down from 3.7 per cent pre-pandemic. Global growth patterns have been changing over the years, notably with China decelerating steadily while India develops into a key growth engine,” Georgieva stated ahead of next week’s annual IMF-World Bank meetings in Washington.
Georgieva cited India’s structural reforms, particularly its nationwide digital identity rollout, as a bold success story. “I’m very big on India because of the boldness of their reforms. For example, everyone told India that digital IDs on a mass scale could not be done. India proved them wrong,” she said.
The IMF chief noted that while the global economy has largely weathered recent shocks — including policy shifts and tariff tensions — it still faces untested pressures. “All signs point to a world economy that has generally withstood acute strains from multiple shocks,” she said, crediting improved policy fundamentals, private sector adaptability, and more favorable financial conditions.
Despite a decline in US tariffs — from 23 per cent in April to 17.5 per cent currently — Georgieva warned that their full impact remains uncertain. “The US effective tariff rate of around 10 per cent remains far above the rest of the world. The full effect of those tariffs is still to unfold,” she said.
Reinforcing India’s rising economic profile, the World Bank on Tuesday revised its growth forecast for India’s FY26 GDP to 6.5 per cent, up from 6.3 per cent. Meanwhile, India’s GDP growth surged to a five-quarter high of 7.8 per cent in the April-June quarter.
Reserve Bank of India Governor Sanjay Malhotra also raised India’s 2025-26 GDP growth forecast to 6.8 per cent, citing the impact of growth-oriented structural reforms like the streamlining of the Goods and Services Tax (GST), which are expected to cushion against external challenges.