Indian economy likely to be 'a little weaker' in 2025: IMF MD
Washington, Jan 11: The Indian economy is expected to be "a little weaker" in 2025 despite steady global growth, IMF Managing Director Kristalina Georgieva has said.
Georgieva also said she expects quite a lot of uncertainty in the world this year mainly around the trade policy of the US.
In her annual media roundtable with a group of reporters on Friday, she said global growth is expected to be steady in 2025, but with regional divergence.
Georgieva said she expects the Indian economy to be a little weaker in 2025. However, she did not explain it any further. The World Economy Outlook update week will have more details about it.
“The US is doing quite a bit better than we expected before, the EU is somewhat stalling, (and) India a little weaker," she said.
Brazil was facing somewhat higher inflation, she said.
In China, the world’s second-largest economy, the International Monetary Fund (IMF) was seeing deflationary pressure and ongoing challenges with domestic demand, she said.
"Low-income countries, despite all the efforts they are making, are in a position when any new shock can affect them quite negatively,” Georgieva said.
“What we expect in 2025 is to have quite a lot of uncertainty, especially in terms of economic policies. Not surprisingly, given the size and role of the US economy, there is keen interest globally in the policy directions of the incoming administration, in particular on tariffs, taxes, deregulation and government efficiency,” Georgieva said.
“This uncertainty is particularly high around the path for trade policy going forward, adding to the headwinds facing the global economy, especially for countries and regions that are more integrated in global supply chains, medium-sized economies, (and) Asia as a region," she said.
That uncertainty is actually expressed globally through higher long-term interest rates, even though short-term interest rates have gone down, the IMF Managing Director said.
Donald Trump will be sworn in as the 47th President of the United States on January 20, replacing Joe Biden at the White House.
Trump, 78, has announced plans to impose additional tariffs on countries like China, Canada and Mexico. He has publicly announced the use of tariffs as a key policy tool.
On inflation, the IMF expects global disinflation to continue, Georgieva said.
"As we all recognise, the higher interest rates that were necessary to fight inflation did not push the world economy into recession. They have delivered the desired results. Headline inflation is converging back to target sooner in advanced economies than in emerging markets,” she said.
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Modi diminishing BRICS+ presidency value to appease Trump, Netanyahu: Congress
New Delhi (PTI): The Congress on Monday lashed out at the government for not releasing a collective statement on the West Asia conflict as the BRICS+ chair, saying Prime Minister Narendra Modi is "diminishing" the standing of the grouping's presidency in his desire to "appease" US President Donald Trump and maintain his "cozy relationship" with Israeli premier Benjamin Netanyahu.
Congress general secretary in-charge communications Jairam Ramesh recalled that Brazil was the President of BRICS+ in 2025 and it got the 11 member countries to issue a joint statement in June 2025 on the US and Israel air assaults on Iran.
"India is boasting of being the President of BRICS+ in 2026. But till now it has not summoned up the inclination or the courage to put out a collective statement on the US-Israel air offensives on and targeted assassinations in Iran, as well as on Iran's subsequent attacks on non-military targets in the GCC countries, and the shocking action of the US Navy in the Indian Ocean close to both Sri Lanka and India," Ramesh said on X.
"In his desire to appease President Trump and maintain his cozy relationship with Mr. Benjamin Netanyahu, Mr. Modi is diminishing the value and standing of the BRICS+ Presidency," the Congress leader said.
The Congress last week had attacked the Modi government for its "silence" on the assassination of Iran's Supreme Leader Ayatollah Ali Khamenei and said "a compromised prime minister no doubt wants to avoid antagonising his American and Israeli friend".
Ramesh had said India has rightly condemned Iran's attacks on Gulf states but is "completely quiet" on the US-Israeli assault on Iran in the first place.
The Congress has said the Opposition is demanding a discussion in both Houses of Parliament on the situation in West Asia and its impact on India, but the Modi government is "adamantly refusing" to allow such a debate as it is "afraid".
The opposition party also claimed that the government's foreign policy "already stands brutally exposed".
The Congress had staged a walkout in the Rajya Sabha and protested in the Lok Sabha on being dissatisfied with the statement of External Affairs Minister S Jaishankar in both Houses of Parliament last Monday.
The party termed as "vapid" Jaishankar's statement on the West Asia situation in Parliament and alleged that Prime Minister Narendra Modi's foreign policy "(mis)adventurism", coupled with the government's "undermining" of the Indian Foreign Service, is pushing India into "vassalage".
The US and Israel launched a major military attack on Iran on February 28, killing Khamenei.
Making a suo-motu statement in Parliament, Jaishankar had said New Delhi stood for maintaining the sovereignty and territorial integrity of all states in the region. He defended allowing the Iranian ship to dock at an Indian port as the right decision taken on humanitarian grounds.
He said the Indian government had been constantly monitoring the evolving situation in the region at the highest level and had already brought back 67,000 stranded Indians from the conflict zone.
Jaishankar said the safety of Indian nationals and national interests, such as energy security and trade, remain the topmost priority for the government.
