India remains a ‘bright spot’, to contribute 15% of global growth in 2023: IMF MD

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India continues to remain a relative “bright spot” in the world economy, and will alone contribute 15% of the global growth in 2023, International Monetary Fund (IMF) Managing Director Kristalina Georgieva said.

While digitisation pulled out the world’s fifth-largest economy from pandemic lows, prudent fiscal policy and significant financing for capital investments provided in the next year’s Budget will help sustain the growth momentum.

“Why is India a bright spot? Because one, the country has done really well to turn the digitalisation that has been already moving quite well into a major driver of overcoming the impact of the pandemic and creating opportunities for growth and jobs,” the Managing Director noted.

“India’s performance has been quite impressive. For this year, we expect India to retain a high growth rate, 6.8% for the year that ends in March. For FY 2023/24 (April 2023 to March 2024) we project 6.1%, a bit of slow down like the rest of the world economy, but way above the global average. And in that way, India is providing about 15% of global growth in 2023,” Ms. Georgieva told PTI in an interview.

That is the fastest growth rate among major economies. India remains a bright spot at a time when the IMF is projecting 2023 to be difficult with global growth slowing down from 3.4% last year to 2.9% in 2023, she observed.