India’s economy has surpassed China to become the fastest-growing in the world, according to Krishna Srinivasan, Director of the IMF’s Asia and Pacific (APAC) Department. In a conversation with ANI, Srinivasan explained that India’s projected growth rate of 6.8% for the fiscal year 2024-25 is very impressive given its size, making it not surprising that India is growing faster than China.
Krishna Srinivasan from the International Monetary Fund (IMF) praised India’s economic performance during a discussion on its economic outlook with ANI on April 20. He commended India’s ability to navigate multiple shocks such as the COVID-19 pandemic, the Russia-Ukraine war, and tensions in the Gulf region, highlighting its resilience.
Srinivasan attributed India’s impressive growth rate to strong private consumption and public investment. However, he emphasized that significant reforms are needed, especially in education and healthcare to fully leverage India’s expanding labor force. According to Srinivasan, India’s young and growing population is expected to add about 15 million people to the labor force each year. He highlighted the importance of substantial investments in education and healthcare to ensure that this demographic advantage contributes effectively to the economy.
Srinivasan expressed optimism about India’s medium-term prospects with a growth rate of around 6.5%, but stressed that implementing comprehensive reforms is necessary for sustained success over several years. With diligent implementation of reforms, he believes that India could achieve a growth rate of 6.5% or higher over the next several years
