Christine Lagarde, chief of the International Monetary Fund, on Monday ahead of her talk with the Prime Minister of India, Narendra Modi, in New Delhi, has referred the Indian economy as a bright spot in the global economy.
Lagarde, who has been in India on a two-day visit for talks with the P.M., Modi, in New Delhi, has praised the prospects of the Indian economy in the context of the world economy, but expressed the need to open up the economy more to cash in on the opportunities the Indian economy has to become one of the most dynamic economies of the world. She was optimistic of India achieving a growth rate of over 7%. Talking to The Times of India, she added that “India is the bright spot” compared to the advanced and emerging economies of the world.
After Modi came to power in May last year, inflation decreased to around 5%, and the data of the revised Gross Domestic Product (GDP) estimated a growth rate of 7.4% during the current fiscal year, meaning thereby that the third largest economy of Asia had now been outpacing China. India, being one of the biggest oil importers of the world, have also benefitted a lot from the fall in the global crude prices.
Lagarde, welcoming the first full budget of the Modi government, told that the budget was an excellent effort to strike balance between growth and equity, and praised Modi’s efforts to transform India as a manufacturing hub and a place highly conducive to investment. However, she outlined areas where more needed to be done to encourage investment, and she referred in this connection to power, mining, and energy. She further added that further reforms in labor laws to create more employment opportunities to the young and women, making land acquisition more easy, and other speedy clearances would facilitate the revival of investment cycle and achievement of faster growth.