Business: India is emerging as a major engine of development in the world. Kristalina Georgieva, Managing Director of the International Monetary Fund has said this. “Global growth is projected to be around 3 percent in the medium term. It was 3.7 percent before the pandemic,” the IMF chief said ahead of the 2025 IMF-World Bank Annual Meeting. He said that in the last few years, the pattern of global development has been changing, especially China’s growth rate has been continuously declining.

Georgieva gave reasons for economic flexibility in India
Speaking at the annual meeting of the IMF and the World Bank in Washington DC, Georgieva described India as a major engine of development for the world. Georgieva gave four reasons for India’s economic flexibility. He said the country has been strengthened on the economic front due to good policy and fundamentals, good performance of the private sector, less initial impact of tariffs than expected and supportive financial conditions. However, Georgieva said the full impact of the tariffs was yet to be revealed.

Fear of inflation in America
Speaking about the US, Georgieva said prices there could rise due to declining margins. It is likely to have an impact on monetary policy and development. Georgieva also said that global resilience “has not yet been fully tested.” He warned that rising demand for gold and easy financial conditions could hide vulnerabilities.

IMF chief’s appeal – Emphasis should be on increasing the productivity of private sector in the world
Georgieva cautioned countries to focus on increasing private sector productivity through reforms that strengthen institutions, protect property rights, and promote fair competition. He also appealed to Asian economies to increase internal trade to boost GDP in the long run.