India remains a ‘bright spot’, to contribute 15% of global growth in 2023: IMF MD

Source: The post is based on the article “India remains a ‘bright spot’, to contribute 15% of global growth in 2023: IMF MD” published in The Hindu on 23rd February 2023

What is the News?

The International Monetary Fund (IMF) Managing Director has said that India continues to remain a relative “bright spot” in the world economy, and it will alone contribute 15% of the global growth in 2023.

What the IMF Managing Director said about the Indian Economy?

The IMF is projecting this year to be difficult with global growth slowing down from 3.4% in 2022 to 2.9% in 2023.

But she said that India will remain a bright spot and will alone contribute 15% of the global growth in 2023.

Why she said India, a bright spot? 

Firstly, the country has done really well to turn digitalization into a major driver of overcoming the impact of the pandemic and creating opportunities for growth and jobs.

Secondly, because India’s fiscal policy has been responsive to economic conditions.

Thirdly, India didn’t shy away from learning the lessons from the pandemic and implementing very strong policies to overcome what has been really a difficult time for a number of months.

What did she say about India’s Budget?

IMF MD said she is impressed by two things in India’s annual budget 2023-24:

Firstly, how much care is placed on balancing development needs with fiscal responsibility in India.

Secondly, the investment in capital expenditures is there to provide the long-term foundation for growth.

— Note: Capital investment is being raised steeply for the third consecutive year by 33% to ₹10 lakh crore.