IMF chief predicts brighter outlook for India

Washington: International Monetary Fund (IMF) Managing Director Kristalina Georgieva on Thursday predicted a less bad outlook for India in the upcoming World Economic Update due to the steps taken by it. "When I called on everybody to stay tuned for January 26, that applies very much to India. You would see a picture in our update that is less bad. Why? Because the country actually has taken very decisive action, very decisive steps to deal with the pandemic and to deal with the economic consequences of it," she said.

The IMF is scheduled to release its World Economic Update on January 26.

"What the government has done on the monetary policy and the fiscal policy side is commendable. It is actually slightly above the average for emerging markets. Emerging markets on average have provided six per cent of the GDP. In India, this is slightly above that. Good for India is that there is still space to do more….. If you can do more, please do," Georgieva said.

Georgieva said that she is impressed by the appetite for structural reforms that India is retaining. "We welcome that. No question those reforms, and actually that applies very much to South Africa... will determine competitiveness in the future. We need higher productivity. We need more vibrant and inclusive economies. And they are not going to fall from the sky. There have to be reforms that support them," she said. The IMF in its October outlook projected India to contract by a massive 10.3 per cent in 2020. However, India is likely to bounce back with an impressive 8.8 per cent growth rate in 2021, it had said.