{"id":229469,"date":"2025-10-16T16:56:12","date_gmt":"2025-10-16T16:56:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/229469\/"},"modified":"2025-10-16T16:56:12","modified_gmt":"2025-10-16T16:56:12","slug":"india-must-fire-all-cylinders-to-sustain-growth-and-boost-trade-says-imf","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/229469\/","title":{"rendered":"India must \u2018fire all cylinders\u2019 to sustain growth and boost trade, says IMF"},"content":{"rendered":"

India must fire all cylinders with focus on domestic demand<\/a>, reforms, investment, innovation, and trade integration, to sustain high growth and meet its long-term development goals, Krishna Srinivasan, IMF<\/a> Director of the Asia and Pacific Department (APD), said Thursday. <\/p>\n

Answering a question from ET Online Editor Deepak Ajwani on India\u2019s approach to tariffs and self-reliance, Srinivasan said, \u201cIf India has to grow at the rate at which you\u2019re talking about in terms of being fixed by 2047, India has to fire all cylinders. Strengthen domestic demands, build internal integration within India\u2026 But also, there is an opportunity here for India to integrate itself in global supply chains.\u201d<\/p>\n

Srinivasan said that India\u2019s recent reforms, including GST, are helping boost domestic consumption. \u201cThe GST reforms go in that direction, which will provide lift to, you know, consumption, they will improve domestic demand,\u201d he said.
Also Read: India a bright spot in a fragmented global economy, but must deepen trade ties, says IMF MD Kristalina Georgieva<\/a><\/p>\n

He also said that India should balance domestic growth with global trade<\/a> opportunities. \u201cThere are many things India needs to do. One thing is pre-liberalization\u2026 If you want to really scale up and compete with China, you need to liberalize your trade, make labor laws more flexible, so that industry can scale up,\u201d Srinivasan said.<\/p>\n

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He added that improving the business environment is crucial, adding that \u201cthere are lots of regulations which impede the ability of the private sector to unleash its full potential.\u201d
On India\u2019s current economic performance, Srinivasan said growth remains strong despite global shocks. \u201cIndia continues to be the fastest growing major economy. We have India going at 6%, 6.6% this year, slowing to 6.2% next year, and that slowed next year is because of the higher tiers of tariffs. If you look at India\u2019s fundamentals, pretty strong, growth is good, inflation\u2019s coming down, fiscal deficit well managed,\u201d he said.
Srinivasan further said that India should not choose between domestic self-reliance and global trade engagement. \u201cIn my view, it\u2019s not one or the other. It needs all cylinders if you want to get to 8% or more growth and meet your objective of Viksit Bharat,\u201d he said.On Asia’s growth and dealing with Trump’s tariffsOn India\u2019s current economic performance, Srinivasan said growth remains strong despite global shocks. \u201cIndia continues to be the fastest growing major economy. We have India going at 6%, 6.6% this year, slowing to 6.2% next year, and that slowed next year is because of the higher tiers of tariffs. If you look at India\u2019s fundamentals, pretty strong, growth is good, inflation\u2019s coming down, fiscal deficit well managed,\u201d he said.\"APAC
He also highlighted Asia-Pacific\u2019s broader resilience. \u201cEconomic activity in the Asia-Pacific is holding up better than expected\u2026 We project the region to grow by 4.5 per cent in 2025 and moderate to 4.1 per cent in 2026. The region is once again set to contribute the lion\u2019s share of global growth\u2014about 60 per cent, both this year and in 2026,\u201d Srinivasan said. He noted that strong exports, a tech boom, and accommodative macro policies, supported by favorable financial conditions, are helping the region withstand shocks.\"Asia
He added that deeper regional and global integration could unlock significant gains. \u201cConcerted efforts to pursue reforms to boost trade and investment will help fuel durable growth for years to come\u2026 Countries can cut non-tariff barriers, broaden and modernize trade agreements to cover services and digital trade, and ease FDI restrictions,\u201d he said in his opening remarks, reflecting the IMF\u2019s view that policy reforms are key to sustainable and inclusive growth.<\/p>\n","protected":false},"excerpt":{"rendered":"India must fire all cylinders with focus on domestic demand, reforms, investment, innovation, and trade integration, to sustain…\n","protected":false},"author":2,"featured_media":229470,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[28,9338,101,11516,45224,64006,128225,128220,128224,128221,128222,128223],"class_list":["post-229469","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-domestic-demand","tag-economy","tag-global-trade","tag-imf","tag-india-economy","tag-india-economy-bost","tag-india-growth","tag-india-growth-indicators","tag-india-growth-needs","tag-india-growth-projections","tag-india-us-rift"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/229469","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=229469"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/229469\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/229470"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=229469"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=229469"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=229469"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}