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Latest World News Update > Blog > Business > India emerging as key engine of global growth: IMF Chief – World News Network
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India emerging as key engine of global growth: IMF Chief – World News Network

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Last updated: October 14, 2025 12:00 am
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New Delhi [India] October 14 (ANI]: India is turning into a key engine of world growth, according to International Monetary Fund Managing Director Kristalina Georgieva, who spoke ahead of the 2025 IMF-World Bank Annual Meetings.
“Global growth is forecast at roughly 3 per cent over the medium term – down from 3.7 percent pre-pandemic. Global growth patterns have been changing over the years, notably with China decelerating steadily while India develops into a key growth engine,” noted the IMF Chief.
Georgieva was speaking at the annual meetings of the IMF and World Bank in Washington DC on Monday.
Highlighting the factors behind economic resilience, she pointed to four reasons: improved policy fundamentals, private sector adaptability, less severe tariff outcomes than initially feared, and supportive financial conditions.
On trade, Georgieva said “the full effect is still to unfold. In the US, margin compression could give way to more price passthrough, raising inflation with implications for monetary policy and growth. Elsewhere, a flood of goods previously destined for the US market could trigger a second round of tariff hikes.”
She also noted that global resilience “has not yet been fully tested,” cautioning that rising gold demand and easy financial conditions could mask vulnerabilities.
Georgieva urged countries to focus on lifting private sector productivity through reforms that strengthen institutions, protect property rights, and promote fair competition. She also called on Asian economies to deepen internal trade and reduce non-tariff barriers to boost long-term GDP.
“As policymakers gather next week, the most pressing questions will be about how to capture and deliver opportunity in a world of rapid change,” she said.
The IMF chief also highlighted that fiscal consolidation is necessary for all countries rich or poor alike.
“Consolidation is difficult, as many of the recent episodes of social unrest show. But if planned, communicated, and implemented well, significant deficit reduction can be delivered–especially if helped by higher medium-term growth.” said Kristalina Georgieva
The IMF’s Annual Meetings are set to discuss strategies to sustain growth, manage fiscal pressures, and reduce global imbalances amid shifting trade dynamics and technological transformations. (ANI)


Disclaimer: This story is auto-generated from a syndicated feed of ANI; only the image & headline may have been reworked by News Services Division of World News Network Inc Ltd and Palghar News and Pune News and World News

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