‘India Proved the Doubters Wrong’: IMF Chief Hails Bold Reforms, Calls Nation Key Global Growth Engine

International Monetary Fund (IMF) Managing Director Kristalina Georgieva has hailed India’s sweeping structural and economic reforms, calling them a model for emerging economies and a major driver of global growth at a time when many other major economies are slowing down.

“I’m very big on India because of the boldness of their reforms. For example, everyone told India that digital identity on a mass scale could not be done... but India proved them wrong,” Georgieva said on Monday at the IMF’s semi-annual gathering of finance ministers and central bank governors in Washington.

The IMF chief lauded New Delhi’s overhaul of tax structures, expansion of digital payments, and integration of the Aadhaar identity framework. These reforms, she said, have strengthened India’s fiscal foundation while boosting financial inclusion, transparency, and governance. Among the major measures, she highlighted the recalibration of Goods and Services Tax (GST) slabs, introduction of targeted ‘sin taxes,’ and restructuring of income tax brackets — reforms aimed at making essential goods more affordable while encouraging consumption.

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“Global growth is forecast at roughly 3% over the medium term — down from 3.7% before the pandemic. Global growth patterns have been changing... with China decelerating steadily while India develops into a key growth engine,” Georgieva added, emphasizing India’s growing prominence on the world stage.

The IMF projects India’s economy to expand by 6.5% in 2025 and 2026, making it the fastest-growing major economy globally. The Reserve Bank of India (RBI) is even more optimistic, projecting 6.8% growth for FY2025-26, driven by strong domestic consumption, private sector investment, and government-led infrastructure spending.

Georgieva, however, cautioned about global vulnerabilities. “Growth is slow, debt is high and the risks of financial downturn are... there,” she said, noting that the IMF and World Bank continue to support developing nations facing severe liquidity pressures. She also flagged potential risks from renewed US-China trade tensions, including tariff escalations that could impact global markets.

Despite these uncertainties, Georgieva’s remarks underline India’s reform-driven growth as a rare bright spot in an otherwise cautious global economic landscape. Her comments reinforce the message that consistent policy action and structural reforms can propel emerging economies to the forefront of global growth.