India’s economy is growing faster than China’s, which is not surprising since both countries’ economies are similar in size, according to Krishna Srinivasan, the Director of the IMF‘s Asia and Pacific (APAC) Department.
IMF APAC Director advocates India’s Economic Growth and Resilience
“China is more than four times bigger than India, and in that sense, if India is growing faster today than China, then it should not be surprising,” said Srinivasan.
The International Monetary Fund (IMF)’s Krishna Srinivasan commended India’s economic performance, describing its anticipated 6.8% growth rate for the fiscal year 2024–2025 as “very impressive.”
Speaking about how India has weathered several shocks, such as the COVID-19 pandemic, the Russia-Ukraine conflict, and the most recent tensions in the Gulf, Srinivasan praised the nation’s fortitude. “India has successfully navigated multiple shocks we’ve seen in the recent past,” he said.
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“I don’t see any red flags in the near term,” Srinivasan said, attributing India’s remarkable growth to both robust private consumption and public investment. He did, however, emphasize that in order to fully realize the potential of India’s growing labor force, significant reforms were required, particularly in the areas of healthcare and education.
Harnessing India’s Demographic Dividend
India’s population is young and expanding. About 15 million more people are anticipated to enter the labor force annually, according to Srinivasan. “To leverage this demographic advantage, substantial investments in education and healthcare are crucial so that the growing labor force can contribute effectively to the economy.”
With a growth rate of about 6.5%, Srinivasan expressed optimism about India’s medium-term prospects but underlined the significance of reforms. “In the coming years, India could achieve a growth rate of 6.5% or higher if comprehensive reforms are implemented diligently,”
