India’s strong fundamentals to cushion global slowdown impact, says IMF chief

India’s economy is likely to stay on a steady path even as global growth comes under pressure from ongoing conflicts, International Monetary Fund Managing Director Kristalina Georgieva said, highlighting the country’s strong fundamentals and policy framework.

At a media briefing during the IMF Spring Meetings on Wednesday, Georgieva pointed to India’s growth momentum as a standout in a slowing global landscape. “Look at India today. India’s growth is more than two times higher than the average global growth,” she said.

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Strong fundamentals keep India ahead of global peers

The IMF chief said India’s economic resilience is rooted in years of policy strengthening and institutional development. She underlined that economies with solid macroeconomic foundations are better equipped to navigate external disruptions.

Georgieva noted that several emerging markets, including India, have significantly upgraded their policy frameworks over time. “That comes because of the strength of fundamentals,” she said, adding that improvements in monetary policy have brought these economies on par with, or even ahead of, advanced nations. “In monetary policy, they are as good… or better than advanced economies,” she said, while indicating that fiscal systems still have scope for further strengthening.

Global risks persist as Middle East tensions loom

Despite the positive outlook for India, Georgieva warned that prolonged tensions in the Middle East could weigh on global growth. “In an adverse scenario… we are going to see a slowdown in global growth,” she said, adding that expansion could fall to around 2 per cent if the conflict drags on.

She also flagged the uneven impact of rising energy costs, especially on countries dependent on imports. “The negative impact is highly asymmetric with the biggest burdens falling on countries that import energy,” she said.

India, along with other Asian economies, remains exposed due to its reliance on energy imports from the Gulf. “Asia is very severely impacted because of the dependency of imports,” Georgieva noted, while adding that strong policy frameworks in the region are helping mitigate the impact.

India’s domestic strength offers a cushion

Even amid global uncertainties, Georgieva maintained that economies with robust domestic demand and credible policy systems, such as India, are better positioned to absorb shocks. “We do not see a scenario under which there would be a dramatic development,” she said, though she cautioned that financial stability risks must be closely monitored.

India has remained among the fastest-growing major economies in recent years, driven by domestic consumption, infrastructure investment and structural reforms aimed at improving business conditions. Its growth trajectory continues to outpace global averages, reinforcing its role as a key engine of economic activity in Asia.