IMF's Gita Gopinath Applauds India's Fiscal Path in Meeting with Finance Minister Sitharaman

Gita Gopinath, First Deputy Managing Director of the IMF, met with Indian Finance Minister Nirmala Sitharaman, praising India's fiscal consolidation and economic vibrancy. The IMF raised India's growth projections for 2024 to 7% from 6.8%, with robust domestic demand and a growing working-age population fueling the economy.

Gita Gopinath, the First Deputy Managing Director of the International Monetary Fund (IMF), met Union Finance Minister Nirmala Sitharaman on Saturday and praised the government's commitment to its 'fiscal consolidation path.' Gopinath acknowledged the robustness of the Indian economy and the strength of its relationship with the IMF.

Sitharaman emphasized India's deep appreciation for its partnership with the IMF, expressing the government's willingness to explore further collaboration opportunities. 'The First Deputy Managing Director @IMFNews, Ms. @GitaGopinath, called on the Union Finance Minister Smt. @nsitharaman, in New Delhi, today. Ms. @GitaGopinath congratulated the Union Finance Minister on the policy continuity in the fiscal consolidation path followed by the Government of India,' the Ministry of Finance shared in a post on X.

In addition to recognizing India's economic vitality, Ms.@GitaGopinath lauded the significance of the nation's alliance with the IMF—a key relationship for India, the IMF, and the global community. FM Smt.@nsitharaman affirmed India's commitment to its partnership with the IMF and expressed an openness to strengthen this collaboration further. The IMF recently revised India's growth projections for 2024 upwards to 7% from 6.8%, citing strong domestic demand and a burgeoning working-age population.

The IMF forecasts a 6.5% growth rate for India in 2025. The country's GDP surged by 8.2% during the financial year 2023-24, maintaining its status as the fastest-growing major economy. Previously, India's growth rates were 7.2% in 2022-23 and 8.7% in 2021-22.

In its latest monetary policy meeting, the Reserve Bank of India revised the GDP forecast for 2024-25 to 7.2% from 7%. The World Bank also adjusted its forecast, increasing it by 20 basis points to 6.6%. Despite a slight moderation in its expansion rate, India is projected to remain the fastest-growing economy among the world's largest nations.

(With inputs from agencies.)