Krishna Srinivasan, the Director of the IMF’s Asia and Pacific (APAC) Department, has praised India’s economic performance and projected growth rate of 6.8% for the fiscal year 2024-25. In a discussion with ANI on April 20, he commended India’s ability to navigate multiple shocks such as the COVID-19 pandemic, the Russia-Ukraine war, and tensions in the Gulf region.
Srinivasan credited India’s impressive growth to strong private consumption and public investment, noting that he does not see any red flags in the near term. However, he emphasized the need for significant reforms, especially in education and healthcare, to fully leverage the potential of India’s expanding labor force.
India’s young and growing population is expected to add about 15 million people to the labor force each year, according to Srinivasan. He highlighted the importance of substantial investments in education and healthcare to ensure that this demographic advantage contributes effectively to the economy.
Srinivasan expressed optimism about India’s medium-term prospects with a growth rate of around 6.5%, but stressed the importance of implementing comprehensive reforms. He stated that with diligent implementation of reforms, India could achieve a growth rate of 6.5% or higher over the next several years.
