IMF lauds India's efforts in managing economy

NEW DELHI: The International Monetary Fund ( IMF) today lauded India's efforts in managing economy well with "good measures", amid persisting global uncertainties.

IMF Managing Director Christine Lagarde, who is om a two- day visit to India, also said the multilateral agency is keen on implementing quota reforms, that would provide more voting rights for emerging nations including India and China.

Appreciating India's economic reforms measures, she said, "The decision of government to cap subsidies at two per cent of GDP, I think that is a very solid anchoring of the role of subsidies."

"We are encouraged to see there is a continued path towards fiscal consolidation. That there is a determination to improve the tax code. There is a determination to cap the subsidies at two per cent. All of those measures are good measures," Lagarde, who is visiting India for the first time after becoming the IMF chief, said.

The IMF chief described India's expected growth rate of 7 per cent next year as "significant" while reminding that vulnerabilities and fragile zones continue to remain in the global economic landscape.

"Change is in the air", she said while stressing that India and China are the leading members of the IMF.

On the global economic situation, she said, "The situation is not as grave as it was three months ago ... (The global economy) is further away from the abyss."

However, she cautioned that supply disruptions from Iran could push global crude prices by up to 30 per cent, at a time when the price is hovering at $ 125 a barrel.