"Staff’s View…": IMF Debunks K Subramanian’s 8% Growth Projections

In a recent press briefing, IMF spokesperson Julie Kozack addressed the disparity between the growth projections put forth by India”s Executive Director at the IMF, K Subramanian, and the IMF”s own forecasts.

Kozack clarified the distinction between the roles of the IMF Executive Board, comprised of representatives from member countries, and the IMF staff responsible for economic analysis and projections. She emphasized that Subramanian”s remarks reflected his role as India”s representative, distinct from the IMF staff”s views.

The IMF”s growth projections, as of January, anticipate medium-term growth of 6.5 percent for India, with a slight upward revision compared to previous forecasts. Kozack indicated that the IMF will provide updated projections in the World Economic Outlook (WEO) report scheduled for release in the coming weeks.

“So we do have an Executive Board. That Executive Board is made up of executive directors who are representatives of countries or groups of countries, and they make up the Executive Board of the IMF. And that”s distinct, of course, from the work of the IMF staff. So, the views conveyed in the particular article by Mr. Subramanian were in his role as India”s representative at the IMF. As for the staff”s views, first, as I”ve said already, we will be updating this in the WEO, which will be coming in the next couple of weeks. But our growth projections as of January were for medium term growth of 6.5 percent, and that was a slight upward revision relative to October. Again, we will be presenting the latest forecast in just a couple of weeks,” Kozack said while responding to a question posed by an Indian journalist during the briefing on Friday.

Subramanian, speaking at an event in New Delhi, had expressed optimism about India”s growth potential, suggesting that the country could achieve an 8 percent growth rate until 2047 by building upon past policies and accelerating reforms.

“So, the basic idea is that with the kind of growth that India has registered in the last 10 years, if we can redouble the good policies that we have implemented over the last 10 years and accelerate the reforms, then India can grow at 8 per cent from here on till 2047,” he said on March 28.

Krishnamurthy Venkata Subramanian, a renowned economist and former Chief Economic Adviser to the Government of India, has been appointed as India”s Executive Director at the IMF since November 1, 2022.