WEF 2024: India needs to keep on path to reform, says IMF's Gita Gopinath

India's growth momentum is expected to continue as long as the country persists with reforms on multiple fronts, said Gita Gopinath, First Deputy Managing Director, International Monetary Fund, on Tuesday, January 16.

Speaking with CNBC-TV18 Managing Editor Shereen Bhan at Davos, Gopinath said, "India continues to be among the fastest-growing major economies in the world, and we expect that to continue into 2024. So that's a very positive story."

The Swiss ski resort of Davos is hosting the annual meeting of the World Economic Forum (WEF).

Gopinath also added that the shift in production from China is also aiding India. But why is foreign direct investment (FDI) still lower than historical averages even in the last three to four years, amid the backdrop of the global supply-chain diversification that is underway?

Gopinath said, "There is a disconnect between the number of FDI projects that have been announced going into India; we've seen a real sharp increase in that, as opposed to when you see the money that's coming in. Now, this, of course, can take time; the only thing India continues to do is keep on the reform path. Building infrastructure is critical."

She added that if you want to see a sea change in a country, you need to have reforms on multiple fronts. And as long as India continues on that path, I think, yes, that's very promising, she added.