India to be world's third-largest economy by 2027-28: Gita Gopinath | Exclusive

Gita Gopinath, the First Deputy Managing Director of the International Monetary Fund, on Sunday told India Today that India will be the world’s third-largest economy by 2027-28.

In an exclusive conversation with Rahul Kanwal, Gita Gopinath also asserted the country would contribute 15 per cent of global growth this year.

"India will be the world's third-largest economy by 2027-28. It will contribute 15 per cent of global growth this year and will be a key driver of economic growth in the years to come," she said.

"For this fiscal year, we expect the growth to be over six per cent and the two driving factors will be public investment and consumption spending," Gita Gopinath said, adding, "We still need structural reforms which is going to be very important."

Also speaking of how crypto assets will be regulated, Gopinath said, "Bringing together not just the regulatory aspect, but also the macro-financial consequences, was one of the biggest achievements of the G20 Summit Presidency."

"It has laid down a good roadmap, which would throw light on the different issues the crypto assets have had and its data," she said.

Gopinath also spoke on digital public infrastructure and said, "India is really on the forefront in this area, not just in terms of innovation, but also on the fiscal front. Other countries in the world are paying attention to what India is doing in this space."

RISKS CONCERNING THE IMF

Speaking to India Today, Gita Gopinath also listed the risks before the International Monetary Fund. "Inflation in major economies, the Russia-Ukraine war and climate-related events are some of the risks before us," she said.

On inflation, Gita Gopinath said, "The good news is that it has been coming down and we are getting hopeful signs."

On risks associated with the ongoing war between Russia and Ukraine, Gopinath said, "Big impacts could be seen on energy and food prices."

GITA GOPINATH ON CHINESE ECONOMY

Upon being asked about the data available on the current condition of the Chinese economy, Gopinath said, "China's economy has slowed down and we can see that, especially the real estate sector, has had troubles for a long time."

"However, China has got all the resources to be able to turn things around and rebound from the loss," she added.

"As per the data available as of now, we see the Chinese economy slowing down," Gopinath said.

INDIA'S MESSAGE RESONATED AT G20: GOPINATH

Late on Saturday, Gopinath took to X (formerly known as Twitter) and congratulated Prime Minister Narendra Modi on presiding over such a successful G20.

"India's message of 'one earth, one family, one future' resonated strongly with all delegates at the G20 Summit," she added.

In response, PM Narendra Modi thanked Gopinath "for the kind words".

"It is an honor to host the G20 summit. Our efforts are a testament to the collective spirit of unity and progress," PM Modi wrote on X.