International Monetary Fund chief, Christine Lagarde during her visit to New Delhi said the global economic slowdown has presented many lessons. The financial and real estate sectors are the prime causes of the global financial crisis, she added.
"Whether it is China or India, the financial sectors and the financial institutions have to be strong, have to be agents for growth and not a threat to growth," she added.
Pleased with India's reforms , Lagarde said that strong economic policies and prudent supervision of the financial sector have allowed the government to limit the direct impact of the crisis on the economy and the financial system.
India has established itself as a leader on the international economic stage and has navigated the global financial crisis well, Lagarde said in an interview to PTI.
Referring to the financial crisis in the Euro zone, the IMF chief said concerted efforts by some European nations and the European Central Bank (ECB) had pulled the continent further away from the brink, though several challenges still remained to be tackled.
"Thanks to the ECB, thanks to the European partners really addressing the issue of governance and thanks to the European partners and the IMF really focusing on what needs to be improved, we are further away from the abyss than we were three months ago, but there are still some really significant vulnerabilities and fragile areas that need to be tackled, that need to be addressed with rigour and vigour in the months to come," Lagarde said.
Lagarde, accompanied by a high level delegation, is on a two-day visit to India aimed at strengthening relations with the Asian powerhouse economy. (ANI)