Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), affirmed that India has become a “major driving force for global economic growth,” amid ongoing shifts in growth patterns and a slowdown in the Chinese economy.

Georgieva stated in remarks published on the IMF’s official website ahead of the annual meetings of finance ministers and central bank governors in Washington this week, that “global growth is expected to reach about 3% in the medium term, compared to 3.7% before the COVID-19 pandemic,” noting that “growth patterns have changed over time, with China’s gradual slowdown while India is evolving to become a major driver of global growth.”

The IMF’s latest reports indicate that the global economy is projected to grow by 3% this year, attributing this stability to decisive economic policies in several countries, private sector adaptation, and a decline in tariff impacts more than expected.

At the same time, Georgieva warned against excessive optimism, saying: “Global resilience has not yet been fully tested, and there are signs of potential new challenges, as evidenced by the rising global demand for gold.”

The Managing Director expects global trade issues to be a key topic of discussion during the IMF and World Bank annual meetings this week, in light of ongoing developments in trade policies among major powers.

Her remarks come after the World Bank raised its growth forecast for the Indian economy for fiscal year 2026 to 6.5% from 6.3%, while lowering its estimate for the following year to 6.3%. India’s GDP grew by 7.8% during the April to June quarter, the fastest in five consecutive fiscal quarters, compared to 6.5% growth in fiscal year 2025.