Business

India’s Growth And Digital Infrastructure Earn Global Praise, Says IMF’s Krishnamurthy Subramanian

India’s economic growth continues to impress the global community, according to Krishnamurthy V. Subramanian, Executive Director at the International Monetary Fund (IMF). Subramanian, who was also India’s Chief Economic Advisor, highlighted the country’s robust public digital infrastructure and inclusive growth as key factors driving international appreciation.

“The world is bullish on India,” Subramanian remarked, pointing to India’s successful digital infrastructure. He noted that his colleagues on the IMF board frequently express admiration for India’s digital strides. Furthermore, the country’s commitment to inclusive growth over the last decade has been widely praised on the global stage.

India’s Growth Outlook Despite Challenges

Subramanian acknowledged a slight dip in India’s growth this quarter. He attributed the slowdown to factors such as a reduction in capital expenditures and impacts from election cycles, as well as a drop in exports. However, he believes this decline is temporary and expects the economy to recover soon.

India’s economic policies during the COVID-19 pandemic set it apart from other nations. While the rest of the world treated COVID as a demand-side shock, India addressed it as both a demand-side and supply-side challenge. This strategy allowed India to implement a mix of policies that protected the most vulnerable sectors of society.

India’s Economic Growth vs. Global Inflation Trends

Subramanian also praised India’s resilience in managing inflation. While many countries experienced inflation levels two to four times their historical averages, India’s inflation stayed close to its historical norms, remaining lower than many advanced economies.

The IMF Executive Director further emphasized that India’s productivity growth has accelerated since 2014. Total factor productivity growth nearly doubled from 1.3% per annum between 2002 and 2013 to 2.7% annually from 2014 onwards.

Entrepreneurship and Innovation Drive India’s Economic Success

India’s entrepreneurial ecosystem has also flourished. New firm creation has significantly increased since 2014, making India the third-largest entrepreneurial hub in the world. Innovation rankings have improved drastically, with India rising from 85th in 2015 to 39th in 2024. Additionally, India’s ranking in ease of doing business has seen a significant leap, from 140th in 2014 to the 60s in recent rankings.

In his new book, “India@100,” Subramanian discusses India’s ambitious goal of becoming a $55 trillion economy. To achieve this, he stresses the importance of growing the manufacturing sector and reforming attitudes towards wealth creation. Subramanian advocates for a mindset shift, where wealth creators are seen as crucial drivers of economic prosperity and job creation.

Subramanian argued that without wealth creators who invest in companies, there would be no job creation. He pointed out that the political rhetoric against wealth creators in India hinders economic growth and job creation, much like the American dream of wealth creation drives prosperity in the United States.

Subramanian concluded that India’s economic future depends on continued structural reforms, embracing wealth creators, and fostering entrepreneurship for inclusive growth.

Also Read: UPI Revolutionizes Digital Payments And Credit Access In India, New Research Shows

Ajaypal Choudhary

Recent Posts

Jamia Students Back Waqf Amendment Bill; Call It A Step Toward Empowerment

The student group 'Shaher-E-Arzoo' expressed firm support for the Waqf Amendment Bill, calling it a…

2 hours ago

India’s Exports To The US Face Limited Impact From Tariff Hike: SBI Report

The 27% tariff hike by US President Donald Trump on Indian goods will have only…

2 hours ago

Waqf Freed From Mafia Control, New Era Of Development Begins For Muslims: MRM

Following the passage of the Waqf Amendment Bill 2024 in both Houses of Parliament, celebrations…

3 hours ago

India’s Forex Reserves Surge To $665.4 Billion; Rupee Strengthens As Trade Deficit Narrows

India’s forex reserves jumped $6.6 billion to a five-month high of $665.4 billion for the…

4 hours ago

Laxmi Singh Leads Gautam Buddha Nagar Police To Historic No 1 Rank In IGRS Across All Stations

Gautam Buddha Nagar Police, led by CP Laxmi Singh, achieved a historic feat with all…

5 hours ago

Avoid Rhetoric That Vitiates Atmosphere, Ensure Safety Of Hindus In Bangladesh: PM Modi Tells Yunus

Prime Minister Narendra Modi called on Bangladesh to bring perpetrators of atrocities against Hindus and…

5 hours ago