The world's fastest-growing large economy, she said, is on the verge of having the largest and youngest-ever workforce and, in a decade, set to become the world's most populous country.

"So, India stands at a crucial moment in its history – with an unprecedented opportunity for transformation. Important reforms are already under way," the IMF Managing Director said at a conference on 'Advancing Asia: Investing for the Future' here.

The conference is being organised by the Ministry of Finance and IMF, which was attended by Prime Minister Narendra Modi.

Recalling that India and IMF go back a long way together – India was a founding member of the Fund more than 70 years ago –  Lagarde said Asia is the world's most dynamic region and today accounts for 40 percent of the global economy.

Lagarde, who got reelected for the second term as chief of the Washington-headquartered International Monetary Fund (IMF), pointed to the global economy facing many challenges.

These challenges, she said, include volatile markets and capital flows, economic transitions and financial tightening in many countries, the large drop in commodity prices, including oil and escalated geo-political tension.

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