India has potential to power next wave of global growth: IMF

India has the potential to power the next wave of global growth, backed by strong economic fundamentals, private-sector dynamism and expanding technological capabilities, International Monetary Fund (IMF) Deputy Managing Director Nigel Clarke has said, according to agency reports.Clarke made the remarks after concluding a five-day visit to India, during which he held meetings with senior policymakers, business leaders and other stakeholders in New Delhi, Mumbai and Chennai.“India has the potential to power the next wave of global growth, and the IMF remains a close partner in supporting the country on this journey,” Clarke said in a statement issued from Washington.
Describing India as the world’s fastest-growing major economy, Clarke said the country remained a key contributor to global economic expansion, supported by strong fundamentals and sound policy frameworks.“India continues to be a key driver of global growth as the world’s fastest-growing major economy, supported by strong fundamentals and sound policy frameworks,” he said.His discussions with Indian policymakers covered the economic outlook, changes in the global environment and measures required to support sustainable and inclusive growth.
The comments come against a backdrop of heightened global uncertainty and evolving economic risks, with policymakers facing challenges related to inflation, competitiveness and sustainable growth.“Preserving macroeconomic stability and resilience remains essential,” Clarke said, stressing the importance of nimble policies, keeping inflation in check and advancing reforms to lift productivity and sustain growth over the medium term.
Clarke also highlighted the growing role of India’s private sector in driving economic expansion. He said the country’s deep talent pool and rapidly evolving technological and manufacturing capabilities could support higher-value economic activities.Innovation, digital transformation, advanced manufacturing and wider technology adoption, he said, could boost productivity and strengthen India’s competitiveness.“Our exchanges highlighted how innovation, digital transformation, advanced manufacturing, and technology adoption can boost productivity, strengthen competitiveness, and support higher-value activities,” he said.
During his visit, Clarke met Union Finance and Corporate Affairs Minister Nirmala Sitharaman, Reserve Bank of India Governor Sanjay Malhotra and NITI Aayog Vice Chairman Ashok Kumar Lahiri.He also thanked the Indian government for its support for multilateralism and assistance to other countries in the region.The IMF’s assessment highlights India’s expanding role in the global economy, with economic resilience, policy stability, technology adoption and private-sector investment emerging as key factors shaping its medium-term growth prospects.

(Business Correspondent)