The International Monetary Fund Managing Director Horst Kohler on Friday lauded India's economic performance.

"India has good growth performance. I think the policy is not so bad. But they should care about their fiscal deficit," Kohler told PTI.

The IMF chief, who is in Dubai to attend World Bank Group and IMF meetings, did not comment on the issue of BPCL and HPCL divestment.

When asked how India could deploy the burgeoning foreign exchange reserves of about $86 billion, Kohler merely said that the Indian economy was doing well.