Success of India grounded in pursuit of reforms over last years: IMF MD

Washington: The economic success of India is grounded in the pursuit of reforms over the last years, Managing Director of International Monetary Fund (IMF) Kristalina Georgieva said Thursday exuding confidence that it would achieve its goal of being a developed nation by 2047 by staying the course.

"India has been a bright spot in the world economy, and it continues to be so. We are upgrading projections for Indian growth to 6.5 per cent in 2024. This comes on the back of fairly strong performance in 2023. The success of India is grounded in the pursuit of reforms over the last years," Georgieva told a group of reporters here.

Georgieva said that one very significant advantages of India is the bold actions on the digital front with the digital public infrastructure, digital ID and making digital a strong comparative strength of India allowing small entrepreneurs to tap into markets in the way they were not able to do before.

"We also see in India recognition that female participation in the labour markets is insufficient. I think Prime Minister (Narendra) Modi is right to bet on Indian women and open up more space for their participation in the economy," she said.

"Last but not least, India recognizes that innovation is what is going to drive a future competitiveness, very effective and efficient investment in R&D as we saw with the moon landing. This creates a very fertile ground for future growth," the IMF head said.

"Where India needs to be watchful like all other countries, it has to be watchful how the strength of public finances and the use of public money support this medium long term objective of strong growth," she said.

To a question on Prime Minister Modi's call to make India a developed nation by 2047, when the country celebrates the 100 years of its independence, she said this is very much achievable.

"I see no reason why this will be unachievable. Stay the course,' Georgieva said hours after the Union Finance Minister in her interim budget said that the Modi's government is working to make India a 'Viksit (Developed) Bharat' by 2047, and that this development would be 'all round, all inclusive, and all pervasive."

The IMF managing director said staying the course also means eliminating obstacles for private entrepreneurship.

"I see in India as actually everywhere space for more to be done," she said. "This has been a very visible strength for India: confidence. And confidence not just in the leadership, (but also) confidence of the people. When I was last in India, I talked to people from all walks of life and there is that sense of confidence in the economy; confidence in the country," Georgieva said.