IMF deputy managing director Gita Gopinath has praised India for performing better than many other global economies while also cautioning that the country needs to improve its labour markets and access to land.
In an interview on the sideline of the ongoing World Economic Forum (WEF) meeting at Davos on Wednesday, Gopinath cautioned against increasing global fragmentation, claiming that it lowers the global economic growth rate.
She was cited as saying in the interview that the Covid-19 outbreak and the Russia-Ukraine war have caused countries to become considerably more concerned about their national security and economic security, pushing them to implement measures that could further fracture society.
The top IMF official commented on India’s growth rate, stating that it is 6.8% for the current fiscal year and 6.1% for the following financial year. At the same time, the International Labor Organization (ILO) estimated a global economic slowdown in the current year.
She also said that more reforms are required if the foreign direct investment is to increase in the manufacturing sector in India.
According to research by EY, India’s GDP will reach $26 trillion, and its per capita income will earn $15,000 by 2047, firmly placing it among the developed countries.