IMF chief Lagarde on 2-day trip to India beginning today

The IMF chief is likely to meet Prime Minister Narendra Modi, Finance Minister Arun Jaitley and RBI Governor Raghuram Rajan 

On the heels of the International Monetary Fund cautioning India on challenges to its economic growth, the organisation’s managing director, Christine Lagarde, will be visiting the country for two days, beginning Monday.

Lagarde is likely to meet Prime Minister Narendra Modi and Finance Minister Arun Jaitley.

She will be in Delhi on Monday and travel to Mumbai the following day.

She is expected to meet Reserve Bank of India Governor Raghuram Rajan in India’s financial capital.

In Delhi, she will give a speech at Lady Shri Ram College and participate in a public event hosted by RBI in Mumbai, the IMF stated.

Adding: “The visit presents an opportunity to exchange views on recent economic developments, India’s prospects and its role in the global economy.”

Last week, IMF had warned India against weak corporate balance sheets and the asset quality of public sector banks, beside external factors that might come in the way of India’s high economic growth.

IMF’s projections for economic growth were below the government’s expectations.

It expected economic growth to be 7.2 per cent for the current financial year against an advance estimate of 7.4 per cent by the Ministry of Statistics and Programme Implementation.

For 2015-16, it pegged India’s growth rate at 7.5 per cent, one percentage point lower than the Budget assumption of 8.5 per cent.

To put the whole issue in perspective, IMF gave projections on the basis of the old definition of gross domestic product as well.

The multi-lateral agency has projected India’s economy to grow annually at the rate of 6.3 per cent to 6.7 per cent in the next five years.

That is lower than the average annual GDP expansion of 8.7 per cent seen in the five years preceding the global economic slowdown of 2008.

After India, Lagarde will visit China from March 19 to 23.

She will meet the leadership and officials, including People’s Bank of China Governor Zhou Xiaochuan and finance minister Lou Jiwei, to discuss the latest developments in global economy and China’s ongoing reform efforts.

The Chinese government has pegged the economic growth rate at seven per cent for this year, lower than the 7.5 per cent it had set for 2014.

Image: Christine Lagarde; Photograph: Reuters