India a bright spot but reform implementation key: IMF's Lagarde tells PM Modi

Calling India a “bright” spot on the global economic horizon, IMF Managing Director Christine Lagarde on Monday told Prime Minister Narendra Modi that India would continue on the growth path that had recently picked up. “India’s growth rate has crossed 7.5 percent, she (Lagarde) said, adding that it is the bright spot in the global economy. She expressed hope that India would continue on this growth path,” the Prime Minister’s Office said in a release. PM pitches for Indian as IMF Deputy MD; seeks greater presence Modi today pitched for a greater representation of Indians in top leadership positions at IMF, even as its chief Christine Lagarde hoped an Indian will “one day” head the global body. In a meeting with Lagarde, who is on a two-day India visit, Modi “emphasized the need to have greater representation for Indians at the higher level of IMF, particularly at the Deputy MD level”. Earlier in the day, Lagarde had said during an event that “one of these days” an Indian can head the International Monetary Fund (IMF). “I hope one of these days. I can’t tell you when. One day of course,” she said in reply to a query on when an Indian could head the IMF. Earlier on Monday, Lagarde said the country was bigger than what is perceived and must seize its moment, while lauding the abilities of Reserve Bank Governor Raghuram Rajan. “Chak de India!” (Come on India), Lagarde earlier said in her speech at Lady Shriram College in New Delhi, as she commenced her two-day visit to India, which will take her to Mumbai on Tuesday. [caption id=“attachment_2157463” align=“alignleft” width=“380”]  PTI[/caption] “India is the bright spot in the global economy at the moment,” she said, echoing Finance Minister Arun Jaitley’s budget speech last month when he said that at a time other economies were facing serious challenges, India was about to take off on a faster growth trajectory. Regarding Rajan, who was a chief economist at IMF, and whom she is slated to meet in Mumbai on Tuesday, Lagarde said: “He’s not bad, he’s pretty good. I want to be very respectful of what Raghu (Raghuram Rajan) does.” “While many countries in the world are grappling with low growth, India’s marching in the opposite direction,” Lagarde told the audience. Her prescription for India – early implementation of a pan-India goods and services tax regime, reform of the subsidy regime, fiscal discipline and sound financial markets. “Growth can’t be your only goal – welfare of people, specially those have traditionally not been included. That should be your objective – inclusiveness. That way you won’t have to face these cycles of ups and downs that have been troubling you.” According to her, implementation of economic liberalisation programme was more important than bold reforms. Yet, she felt, India today was in a position to face eventualities – like the one posed by possible hike in the US interest rates. “India’s well-prepared. Fundamentally, you are strong.” She is scheduled to attend a public event hosted by the Reserve Bank in Mumbai on Tuesday. Speaking at one of the premier colleges for women here, Lagarde cited a forthcoming IMF working paper that shows India’s female labour force participation rate of 29 percent, that is far below that of its emerging market peers and has been declining since 2005. Lauding Modi’s campaigns to educate girls and save girl children, Lagarde said: “My definition of inclusiveness includes women and includes everybody.” Agencies