New Delhi: India is embarking on significant reforms and will grow at more than 7%, IMF managing director Christine Lagarde has said.
“China is rightly rebalancing from manufacturing to services, from investment to consumption, and from exports to domestic services—which should produce a more sustainable, albeit slower growing economic model. Even so, it will continue to grow at a robust rate of about 6%. So too will India, which is also embarking on significant reforms, at more than 7%," the International Monetary Fund (IMF) quoted Lagarde as saying at an event in Northwestern University, US.
She said the world has changed fast over the past 20 years and it will not stand still. “In the emerging and developing countries—home to 85% of the world’s population—we have seen more progress for more people than at any time in history: child mortality is down, life expectancy is up, absolute poverty has declined, school enrolment is on the rise," she said.
Recently, Asian Development Bank also said India’s economy will remain on a strong growth path this fiscal and clock a growth of 7.4%, aided by implementation of key structural reforms, robust consumer demand and higher agricultural output driven by a good monsoon.
India recently adopted structural reforms to attract more foreign direct investment and passed a legislation to allow a national tax that will create a more integrated and productive economy. The government intends to implement the goods and services tax (GST) from 1 April, 2017.