India Emerges as Key Driver of Global Growth, Says IMF Chief Kristalina Georgieva
India is rapidly positioning itself as a central force in the global economy, according to International Monetary Fund (IMF) Managing Director Kristalina Georgieva. Speaking ahead of the 2025 IMF-World Bank Annual Meetings, Georgieva highlighted shifting global growth dynamics and the growing role of India in the post-pandemic economic landscape.
“Global growth is forecast at roughly 3 percent over the medium term – down from 3.7 percent pre-pandemic,” Georgieva said during her address in Washington D.C. on Monday. “Global growth patterns have been changing over the years, notably with China decelerating steadily while India develops into a key growth engine.”
The IMF Chief’s remarks underscore India’s rising prominence in a world where traditional growth leaders like China are experiencing a relative slowdown. India’s economic resilience, she suggested, is supported by a combination of policy improvements and private sector dynamism.
Georgieva outlined four key factors contributing to global economic resilience: improved policy fundamentals, adaptability in the private sector, milder-than-expected tariff impacts, and supportive financial conditions. These elements have helped many economies navigate a complex and uncertain global environment.
However, she also warned that the full impact of ongoing trade realignments has yet to materialize. “In the US, margin compression could give way to more price passthrough, raising inflation with implications for monetary policy and growth,” Georgieva noted. “Elsewhere, a flood of goods previously destined for the US market could trigger a second round of tariff hikes.”
Georgieva cautioned that the global economy’s resilience “has not yet been fully tested.” She pointed to rising gold demand and easy financial conditions as potential signs of underlying vulnerabilities that could pose risks in the near future.
As the global community gathers for the 2025 IMF-World Bank Annual Meetings, the spotlight on India’s economic trajectory reflects broader shifts in the global growth landscape, with emerging markets playing an increasingly pivotal role.
