International Monetary Fund said, with strong growth and rising real income, India remains a bright spot in the global economy. In a policy address, in Frankfurt, IMF Chief Christine Lagarde said, India has reduced spending on costly energy subsidies so it can invest more in growth-enhancing social infrastructure.
She said, overall, the global outlook has weakened further over the last six months-exacerbated by China’s relative slowdown, lower commodity prices and the prospect of financial tightening for many countries.
She said, the expectation that the advanced economies would pick up the growth baton has not been fulfilled. Lagarde also said downturns in Brazil and Russia are larger than expected, and the same is true for West Asia, which has been hit hard by the oil price decline.