International Monetary Fund (IMF) head Christine Lagarde on Monday said that India is well on its path to be the “world&’s fastest growing large economy” and is in a better position than other emerging economies to deal with external financial shocks.
She began her two-day visit to India from Monday during that she is scheduled to meet with Prime Minister Narendra Modi, Finance Minister Arun Jaitley and Reserve Bank of India (RBI) Governor Raghuram Rajan.
The head of the multi-lateral international funding agency tweeted that she was excited to return to India.
“Wonde(r)ful to be back in vibrant India – poised to become world&’s fastest growing large economy,” she wrote on the micro blogging site.
Lagarde&’s visit comes days after IMF predicted that growth forecast for the country is “to rise to 7.2 percent in this fiscal year” and called it “the bright spot in the global landscape”.
The agency attributed the revival of Indian economy to “positive policy actions that have improved confidence and lower global oil prices”.
Bringing cheer to investors, IMF said India was set to become “one of the fastest-growing big emerging market economies in the world”.
Lagarde earlier in an interview to the Times of India echoed the findings of the IMF report last week.
She said that the numbers were on India’s side with inflation dropping to around five percent and the country&’s current account deficit shrinking with the rupee maintaining a steady rate since late-2013.
"India is indeed a bright spot in the global economy, and economic developments hold much promise. I believe India has an opportunity to become one of the world’s most dynamic economy and my message during my visit here will be: ‘seize it’," Lagarde told the newspaper.
She also praised Modi and Rajan saying that their policies have steered the economy to a higher growth trajectory.
The first woman to head the IMF also called for bringing more women into the workforce to boost growth because IMF research on India “finds that growth that’s more equitable is more sustainable”.
She emphasized the “important role” women’s economic participation can play in boosting the growth.
“We care about this. We need more economic growth globally and there’s evidence, including from recent IMF research on India that bringing more women into the workforce can increase growth.”