The International Monetary Fund (IMF) has praised India for maintaining fiscal discipline in the election year, saying the Indian economy is performing well. Krishna Srinivasan, Director of Asia and Pacific Department at IMF, said in an interview to news agency PTI that India’s economy is performing well at present. The growth of 6.8 percent is very good. Inflation is decreasing. We have to ensure that inflation is brought down to the target.
India’s economy is strong
Maintaining fiscal discipline, especially in an election year, is a very important thing for me as countries embark on fiscal adventures in election years, he said. Srinivasan said that this government has maintained discipline. I think this is very important because ultimately solid ‘macro fundamentals’ are the basis on which countries prosper and achieve sustainable growth. Therefore it is very important to maintain it. He said that India has faced many shocks in the last several years and has successfully overcome them. It is emerging as one of the fastest growing major economies in the world.
India is playing a big role in global growth
He further said that in fact this financial year 2024-25 we are estimating a growth rate of 6.8 percent led by private consumption and public investment. Inflation is gradually decreasing. It is now below five percent.” Srinivasan said that India is one of the major countries contributing to global growth. He said that this year we expect economic growth of 6.8 percent. This will be made possible by private consumption and a lot of public investment. India will contribute about 17 percent to global growth. That’s why we believe this is a great location.
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