India to exceed China in growth this year : IMF chief

Calling India a "bright spot" in the global economy, Lagarde said its economy should grow by 7.5 per cent in the 2015/16 fiscal as against the projected global growth of 3.5 per cent during the same period.

"India is bigger than India and is intimate with the world.It has become a leader in science, tech, pharma, biotech; you name it," she said in an interaction with NDTV attended by college students at Lady Shri Ram college for Women.

"India's growth is expected to exceed China's this year...Just as many countries are battling with low growth, India has been marching in the opposite direction," Lagarde said.

"By 2019 India will be double the size than in 2009 and by 2030 it is expected to have the largest labour force in the world."

She observed that recovery  from global financial crisis six years ago, is still very slow. "In US, UK there is more promising recovery but in the Euro area and in Japan it is still very slow."

Commending the move taken by the Narendra Modi government, Lagarde said the recent policy reforms have given a boost to India's business climate.

"The recently approved budget (of India) is a step in the right direction. India's  recent adoption of flexible inflation targeting is very welcome," she said adding she would personally like to invest in India.

Lagarde, however, said financial inclusion is important because it is strongly rooted in empowerment.

Much needs to be done in easing land acquisition, expediting clearances, and establishing a stable regulatory regime so that the private sector can invest, she said.

"I have heard the discussion about "Make in India"; but infrastructure, transportation are key to it's success," Lagarde said..

Underscoring the need to unleash the potential of women, she said she wants more women economists from India."I hope one of these days an Indian woman is IMF chief."

Lagarde worried that only 33 per cent women are on India's job market.

"Companies that have women in the board fare better than those who don't and same goes for the economy...eliminate tax discrimination that hamper women's access to the workforce," she said.