India has an opportunity to emerge as one of the world’s most dynamic economies but it needs to implement the planned reforms and open up more fully to the world, IMF chief Christine Lagarde told TOI in an exclusive written interview.

Lagarde, who begins her India visit on Monday, praised the steps taken by PM Narendra Modi and RBI governor Raghuram Rajan to steer the economy to a higher growth trajectory and called for bringing more women into the workforce to boost growth.

The Christine Lagarde interview

“India is indeed a bright spot in the global economy, and economic developments hold much promise. I believe India has an opportunity to become one of the world’s most dynamic economy, and my message during my visit here will be: seize it!,” Lagarde told TOI.

The IMF chief also lauded the government’s financial inclusion plan Jan Dhan and said the JAM trinity (Jan Dhan, Aadhar and Mobile) is an important step towards overhaul of the subsidy regime.

“Subsidies that are needed to help the poor often end up favouring the middle class. That is why the JAM Number trinity – Jan Dhan (bank accounts for all households), Aadhaar (unique identity for all persons) and Mobile (phone) could be a major step up in terms of direct income support to the poor,” she said.

READ ALSO: India's growth rate to surpass China's in 2016, IMF says

Lagarde, who is expected to meet Modi, finance minister Arun Jaitley and other key policymakers during the trip called for accelerating reforms in crucial areas.

“Further reforms to India’s complex system of labour laws to encourage young job-seekers and boost presently-low female labor force participation, as well as easing of land acquisition and other clearances, will be helpful to revive the investment cycle and achieve faster growth,” she said.

“Moving the economy forward in this direction would help India sustain its flight of high growth and economic stability for years to come,” Lagarde said.

READ ALSO: IMF ups India's growth forecast to 7.2% for current fiscal

