Business: India is a bright spot in a fragmented global economy, but it needs to deepen trade ties. International Monetary Fund (IMF) MD Kristalina Georgieva said India remains one of the strongest pillars of global growth, even as the world economy is becoming more unpredictable amid rising tariffs, unequal expansion and the rapid development of artificial intelligence (AI).

India is one of the fastest growing economies, Georgieva said at an IMF press conference. It contributes significantly to global development. According to him, the country could benefit from closer trade integration. India itself can aim for a higher level of trade integration with partners. India still retains some barriers to trade.

The IMF MD recently pointed to changing global trade patterns due to major economies adopting tariff measures. “This is a significant change,” Georgieva said. The world’s largest economy has chosen to use tariffs as a tool in relations with partners. The rest of the world has not yet followed suit. Of the 191 members of the IMF, we have seen only three countries, the US, China and Canada, move more strongly on tariffs.

The global economy is stuck at three percent…
The IMF chief said, the world economy is currently stuck at a growth rate of 3 percent. AI could bring the next wave of productivity gains. AI will contribute between 0.1 to 0.8 percent to growth. Getting that growth from AI will be very important for the world.