"India's Impact on the Global Economy"

Gita Gopinath, a top economist at the International Monetary Fund (IMF), discussed India’s role in the world economy. She mentioned that India contributes about 15% to the global economy. India is also expected to become the third-largest economy worldwide by 2027-28, according to current estimates.

Gopinath called India an important driver of global growth but stressed that more work needs to be done to keep up the momentum. She explained that India should focus on maintaining high growth over the next few years, which will require making structural changes. While India is becoming a major economy, it’s crucial to improve the income of individual citizens.

She said India’s growth comes from public investments and people spending money, but attracting private investments is essential. To do this, she mentioned the need to invest in public infrastructure. Gopinath also highlighted that India needs to improve areas like business ease, education, and women’s participation in the workforce.

India is leading in digital infrastructure, which Gopinath praised. She said other countries are watching India’s progress closely.

Regarding China’s economy, Gopinath noted it’s slowing down but believes China can manage it with economic policies. She also mentioned that India did a great job as the host of the G20 summit and achieved important agreements, including on crypto regulations.

During the G20 meeting, countries discussed how to regulate crypto assets globally. Gopinath explained that they agreed crypto assets like Bitcoin should not become legal currency, but they set guidelines for licensing and registration. Each country will apply these principles while considering its specific situation.

Gopinath’s insights highlight India’s growing influence in the world. She emphasized the need for ongoing reforms and responsible crypto asset regulation.

Re-reported from the article originally published in India Today