India is one of the fastest growing economy; need higher trade integration with partners: IMF MD Kristalina Georgieva

International Monetary Fund (IMF) Managing Director Kristalina Georgieva said that India remains one of the strongest pillars of global growth even as the world economy turns more unpredictable amid rising tariffs, uneven expansion, and the rapid advance of artificial intelligence (AI), according to an ET report.Speaking at an IMF press conference, Georgieva replied to ET Online’s query, “India is one of the fastest growing economy. It contributes to global growth substantially.” She praised the country’s economic momentum but suggested that India could gain further by deepening trade integration. “India itself can aim for a higher degree of trade integration with partners. India has still maintained some barriers to trade — tariffs, restrictions,” she said.

Georgieva highlighted shifting global trade patterns, noting that major economies are increasingly using tariffs, ET reported. “There is a significant change. The largest economy of world has chosen to use tariffs as an instrument in relation with partners,” she said. “The rest of the world has not followed so far. Out of 191 members of IMF, we have seen only 3 moving more forcefully on tariffs — US, China and Canada.”The IMF has raised India’s economic growth forecast for FY26 to 6.6% from an earlier estimate of 6.4%, citing robust first-quarter growth that offset the impact of higher US tariffs on Indian goods.Georgieva also assessed the global economic outlook, noting that growth remains constrained. “The world economy is stuck at 3% growth right now,” she said, adding that AI could provide a significant boost to productivity. “AI will contribute to growth, somewhere between 0.1 to 0.8%. This is significant. To extract that growth from AI, it would be very significant for the world.”In line with this, the IMF has launched an AI Preparedness Index to gauge countries’ readiness to leverage the technology. “Preparedness really matters, and it is happening fast. We don’t really have much time,” Georgieva said.The IMF chief also warned about growing imbalances across economies. “The global economy is excessively imbalanced,” she said, cautioning that diverging policy choices could widen gaps between advanced and emerging markets.On China, Georgieva noted the economy’s resilience amid global turbulence but projected slower growth. “China is growing faster than the global average, and it is contributing to global growth,” she said, adding that the IMF expects the economy to slow to 4.2%. She highlighted policy challenges in Beijing, urging authorities to resolve real estate issues, strengthen social safety nets to boost consumer confidence, and open sectors such as services and education currently less active in the market.