Krishna Srinivasan, the Asia & Pacific Director at the International Monetary Fund (IMF), emphasized the critical need for India to invest in education and healthcare to sustain its growth trajectory as the world's fastest-growing economy.
Krishna Srinivasan, the Asia & Pacific Director at the International Monetary Fund (IMF), emphasized the critical need for India to invest in education and healthcare to sustain its growth trajectory as the world's fastest-growing economy. Speaking on Saturday, Srinivasan highlighted the IMF's latest World Economic Outlook projections, which estimate India's growth at 6.8% for the fiscal year 2023-24 (FY24) and a steady 6.5% for the current fiscal year 2024-25 (FY25).
The revised growth estimates, up from 6.5% projected in the previous outlook, underscore India's resilience amidst various challenges, including the COVID-19 pandemic, the conflict in Ukraine, and tensions in the Gulf region. Srinivasan attributed India's robust growth to strong private consumption and public investment, as reported by ABP Live.
However, he cautioned about near-term risks, particularly volatility in commodity markets and the impact of rising oil prices amid geopolitical tensions. Srinivasan also highlighted climate change and economic fragmentation as challenges.
In terms of reforms, Srinivasan stressed the importance of significant investments in education and healthcare to leverage India's young and growing population. He emphasized the need for effective implementation of recent labor laws to enhance labor market efficiency. Additionally, he called for improvements in the business environment, trade liberalization, land reforms, agricultural reforms, and fostering a conducive environment for foreign direct investment (FDI).
Comparing India's growth with China, the IMF report projects China's growth at 4.6% for FY24. Despite India's smaller economic size compared to China, Srinivasan noted India's potential to outpace China in growth, mentioning the importance of ongoing reforms for India's long-term prosperity. He urged collaboration between central and state governments to advance the country's economic agenda.