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Business News/ Economy / No surprise that India's economy growing faster than China, says IMF APAC Director Krishna Srinivasan
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No surprise that India's economy growing faster than China, says IMF APAC Director Krishna Srinivasan

Krishna Srinivasan, the Director of the IMF's Asia and Pacific Department attributed India's impressive growth to robust private consumption and public investment

Krishna Srinivasan, director, Asia Pacific Department, IMF.Premium
Krishna Srinivasan, director, Asia Pacific Department, IMF.

India's emergence as the fastest-growing economy, surpassing China, is unsurprising due to the parity in the size of the economies of both nations, as per Krishna Srinivasan, the Director of the IMF's Asia and Pacific (APAC) Department.

"China is more than four times bigger than India, and in that sense, if India is growing faster today than China, then it should not be surprising," Srinivasan explained, while speaking with ANI.

Krishna Srinivasan from the International Monetary Fund (IMF) praised India's economic performance, calling its projected growth rate of 6.8% for the fiscal year 2024-25 "very impressive." These comments were made during a discussion on India's economic outlook with ANI on April 20.

Speaking on India's ability to navigate multiple shocks, including the COVID-19 pandemic, the Russia-Ukraine war, and recent tensions in the Gulf region, Srinivasan praised the country's resilience. "India has successfully navigated multiple shocks we've seen in the recent past," he stated, as quoted by ANI.

Srinivasan credited India's impressive growth to strong private consumption and public investment, stating, "I don't see any red flags in the near term." However, he stressed the need for significant reforms, especially in education and healthcare, to fully utilize the potential of India's expanding labor force.

"India has a young, growing population. It is expected to add about 15 million people to the labor force every year," Srinivasan pointed out. "To leverage this demographic advantage, substantial investments in education and healthcare are crucial so that the growing labor force can contribute effectively to the economy."

While expressing optimism about India's medium-term prospects with a growth rate of around 6.5%, Srinivasan emphasized the importance of reforms. “If comprehensive reforms are implemented diligently, India could achieve a growth rate of 6.5% or higher over the next several years," as quoted by ANI.

(With Inputs from ANI)

 

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Published: 20 Apr 2024, 11:42 AM IST
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