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The International Monetary Fund (IMF) Deputy Managing Director Gita Gopinath has hailed India for doing better than many global economies, while she cautioned that the country needs to work on labour markets and land. She also cautioned against growing fragmentation globally and said it hurt the global growth rate.

She said the Covid-19 pandemic and the Russia-Ukraine war has made countries much more concerned about national security and economic security, which is causing them to undertake policies that could lead to greater fragmentation. She said India though has been receiving lots of positive sentiments but at the same time added that greater reforms are needed for foreign direct investment in the manufacturing sector.

She further said a lot of businesses and companies are looking towards India as an investment destination as they try to diversify away from countries including China. Talking about India's growth rate, she said that in the current fiscal, it is 6.8 per cent while it would be 6.1 per cent for the next financial year.