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IMF finds it difficult to express in words the digital transformation that India underwent under PM Modi

Paurush Gupta by Paurush Gupta
14 October 2022
in Economy
IMF Indian economy
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IMF prediction for Indian economy: In 2020, a once in a century COVID pandemic hit the entire planet and caught every nation off guard. There was no cut out definite response to the increasing health and livelihood conundrums. While many nations and economists vehemently advised cash infusions and helicopter money, the Modi government chose a unique path.

Sidelining the liberal outcry, the Modi government undertook PMGKY, targeted direct benefit transfer (DBT) and deep rooted structural reforms. The recent development vindicates that the path of structural reform while encompassing the social safety net was the most effective response undertaken during the Covid-19 era.

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IMF lauds India’s resilient economy

Currently, the International Monetary Fund (IMF) and World Bank Group are holding their annual meetings in Washington, DC. During the discussion, the IMF officials heaped praises on India’s effective economic measures during the troubling times of Covid Pandemic. Calling India a “bright spot”, the IMF MD Kristalina Georgieva lauded India’s rising economic might and reform driven sustainable economic growth.

In an interaction, she said, “India deserves to be called a bright spot on this otherwise dark horizon because it has been a fast-growing economy, even during these difficult times, but most importantly, this growth is underpinned by structural reforms.”

Also Read: IMF’s report on India’s food security is a tight slap to detractors of Modi government

India deserves to be called a bright spot on this otherwise dark horizon because it has been a fast-growing economy, even during these difficult times, but most importantly,this growth is underpinned by structural reforms: Kristalina Georgieva, Managing Director, IMF

(File pic) pic.twitter.com/Q06rLIIwhf

— ANI (@ANI) October 13, 2022

At a time when the world economy is eyeing towards a global recession, India has been witnessing sharp economic growth coupled with systemic and structural reforms. As per IMF, there are 25% chances of a global recession but Indian economy has been undeterred by this courtesy of the effective measures taken during and after the covid pandemic by the Modi government. As per IMF predictions, India will remain the fastest growing economy among the major players.

Also Read: IMF begs India for wheat

In its Growth Forecast for 2023, IMF has found out that the Indian economy might witness a rapid growth at around 6.1% in 2023 as compared to 6.8% in the current Fiscal year. Apart from India, all other major economies will either suffer recession or grow at snail pace or remain static.

IMF Growth Forecast: 2023

USA🇺🇸: 1%
Germany🇩🇪: -0.3%
France🇫🇷: 0.7%
Italy🇮🇹: -0.2%
Spain🇪🇸: 1.2%
Japan🇯🇵: 1.6%
UK🇬🇧: 0.3%
Canada🇨🇦: 1.5%
China🇨🇳: 4.4%
India🇮🇳: 6.1%
Russia🇷🇺: -2.3%
Brazil🇧🇷: 1%
Mexico🇲🇽: 1.2%
KSA🇸🇦: 3.7%
Nigeria🇳🇬: 3%
RSA🇿🇦: 1.1%https://t.co/VBrRHOfbIE #WEO pic.twitter.com/0TDJbgSuka

— IMF (@IMFNews) October 11, 2022

India has indelible positive impact on the World

The IMF Deputy Director of Fiscal Affairs Department Paolo Mauro applauded India. He hailed Modi government’s direct cash transfer scheme and termed it no short of “logistical marvel”.

He opined that there is much to learn from India specially how the large nation launched targeted programmes to help women, elderly and farmers. He emphasised that in all these examples, India undertook a lot of successful technological innovation.

The IMF official Paolo pointed out that the effective usage of the unique identification system, the Aadhaar, in DBT made these cash transfers a success and scripted India’s sharp economic recovery.

Also Read: Pakistan’s ‘non-existent roads’ are faster than India’s 8-lane expressways; says the IMF

IMF MD Kristalina Georgieva complimented India’s structural reforms. She highlighted that India made “remarkable success” in digitalisation. From digital ID to providing all services and support on the basis of digital access, India showed a successful template in the toughest of the time.

She prophesied that India will leave an indelible mark on the world through its G20 presidency in 2023. She stressed that India will lead the group from a position of “strength” during its G20 presidency.

She said, “..the country is now stepping into taking the lead on G20 from that position of strength, which makes me strongly believe that we will see India leaving a mark on the world for years to come during next year’s presidency (of G20).”

The IMF forecast and compliments for the deep rooted structural reforms are a tight slap to all the economists who were adamant that only their way would ensure economic recovery and progress in the dark times of Covid pandemic. But all those naysayers of these structural reforms initiated by the Modi government should see for themselves that countries who paid heed to their economic suggestions are suffering economic downturn. While India is only witnessing resurgent growth and has shot up, overtaking its once coloniser, to become the fifth largest economy in the world.

Rising Indian economy has shown that long term programmes always bear better fruits than short term interjections and helicopter money. Furthermore, success of digitisation and India’s changed attitude of doing business will keep on shunning the cacophony of insane and retarded cynics.

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