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Wednesday, October 15, 2025

India becoming ‘key growth engine’ – IMF Chief

HomeUpdatesIndia becoming ‘key growth engine’ – IMF Chief

Kristalina Georgieva has commended the South Asian nation for its “bold economic and structural reforms”

International Monetary Fund (IMF) Managing Director Kristalina Georgieva has called India a “key growth engine” in the world economy.

She made these comments on Monday at the global financial body’s semi-annual gathering of finance ministers and central bank governors, according to reports.

“Global growth patterns have been changing over the years, notably with China decelerating steadily while India develops into a key growth engine,” she said. The IMF predicts that India’s GDP will rise 6.5% in 2025 and 2026.

The IMF chief also commended India for its “bold economic and structural reforms”, including the overhaul of direct and indirect tax laws, the widespread adoption of a digital payments system, and the development and implementation of a digital social identity framework.

Last month, India cut consumption taxes on most household items in an effort to cushion the economy from the 50% US tariffs imposed by the White House and spur consumption ahead of the South Asian nation’s annual festive season. 

On Monday, Georgieva said developing economies were burdened with persistent debt and would face challenges on account of Trump’s tariffs. “The full effect is still to unfold,” she added.


READ MORE: Here’s how an ancient Indian craft is suffering under Trump’s tariffs

The 50% tariffs imposed by the Trump administration threaten to shave 0.8% off the South Asian nation’s GDP growth rate, according to estimates.

October 15, 2025 at 12:43PM
RT

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