India not growing as fast as it should: IMF chief Christine Lagarde tells India Today Givin

Giving thumbs down to the loan waiving tendencies of the Indian government, the IMF chief said that such policies need to be revisited.

Christine Lagarde

International Monetary Fund (IMF) Managing Director Christine Lagarde attends a news conference in Davos. (Image: Reuters)

India should be growing faster than the rate at which it is growing now, observed IMF Managing Director Christine Lagarde at the World Economic Forum in Davos.

Speaking to India Today TV, International Monetary Fund (IMF) chief Lagarde said that given the demographic conditions, Indian economy should be growing at a greater pace than what it is doing right now.

She also said that while multiple reforms have been undertaken by the government, there is still a lot left to be done.

Earlier on Monday, the IMF observed that India is projected to grow at 7.5 per cent in 2019 and 7.7 per cent in 2020 and would be the fastest among the major growing economies of the world.

The IMF has said that India’s growth rate in 2018 was 7.3 per cent.

Speaking to India Today TV, Lagarde further said that it is a good sign that the projected growth is high but the government needs to address the crisis in the agriculture sector as a large number of people depend on this sector.

Lagarde urged the Indian administration to focus on the agriculture sector.

On another note, she also said that creation of activity and economic value that leads to employment generation is critical for the country to grow.

The Opposition has been targeting the Modi government over reports of growing unemployment in the country that has a massive percentage of youth in its population of 1.2 billion.

According to the International Labour Organisation (ILO), India had an unemployment rate of 3.5 per cent in 2018, which is most likely to continue in 2019, the same which was seen in 2017 and 2016.

According to the data, there will be 18.9 million jobless people in India in 2019, a little more than 18.6 million in 2018.

Economic crisis, unemployment and farm loan crisis has been some of the critical issues over which the Modi government is being targeted by the Opposition and will continue to dominate the headlines in the coming days as the country enters the election phase.

Giving thumbs down to the loan waiving tendencies of the Indian government, the IMF chief said that such policies need to be revisited.

Speaking on Indian-origin Gita Gopinath, who has joined IMF as the chief economist, Lagarde said that she is the best and is demonstrating that every day.

Categories: Economy

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