New Delhi: International Monetary Fund (IMF) Deputy Managing Director Gita Gopinath has said that the data on India's economy is strong and reflects the large amount of public investment which has been a key factor in accelerating growth. She said that India should make more reforms to maintain its high growth rate and ensure adequate employment.

Gopinath, who claimed that India will become the third largest economy by 2027, said that it is important to ensure that economic growth is accompanied by the creation of sufficient employment. Addressing a program at the Delhi School of Economics, she said, from a long-term perspective, there is no connection between fiscal consolidation and growth, but if the fiscal condition of a country is not good, then it is more likely to get into a crisis in the long run.

That is why governments pay more attention to fiscal consolidation. He said that reducing the fiscal deficit in the short term can have a negative impact. However, there are some methods which do not have any significant negative impact. His statement is being linked to the announcement of Finance Minister Nirmala Sitharaman, in which she talked about reducing the fiscal deficit to 4.9 percent of GDP in the budget of 2024-25.

The main objective of reducing the fiscal deficit is to ensure stable growth, as a lower fiscal deficit helps keep inflation under control. It will also reduce the borrowing required by the government, leaving more money in the banking system for companies to borrow, thereby boosting growth and creating more jobs.

On the appointment of women to top positions in international organisations, Gopinath said that at one time it was unimaginable that the Managing Director of the IMF would be a woman. However, now we have a woman Managing Director and the previous Managing Director was also a woman.