IMF lauds India’s resilient economy

Washington: Even though the globe faces economic challenges as a result of several waves of the COVID-19 epidemic, the International Monetary Fund (IMF) has lauded India’s strong economy while emphasising the structural changes implemented by the government in recent years.

After meeting with Finance Minister Nirmala Sitharaman in Washington DC on Monday (local time), IMF Managing Director Kristalina Georgieva praised India’s well-targeted policy mix that has helped the Indian economy remain resilient.

Despite the COVID-19 pandemic, Ms. Georgieva praised India’s tenacity as the world’s fastest-expanding major economy.

On the sidelines of the IMF-World Bank Spring Meetings, Ms. Sitharaman met with Ms. Georgieva.

On the trip were prominent officials like Chief Economic Advisor Anantha V. Nageswaran and IMF FDMD Gita Gopinath.

On the agenda were various global and regional economic challenges.

Mme Georgieva also mentioned a focused policy mix used by India. A statement from the ministry said she praised India’s support for IMF capacity development operations.

Ms. Sitharaman explained that India’s policy strategy included a dovish fiscal stance, massive structural changes, and targeted help for MSME and other vulnerable groups.

The Monetary Authority, Ms. Sitharaman added, fully supported and complemented these initiatives.

During the COVID pandemic, excellent agricultural output and a good monsoon assisted India, said the Finance Minister. Agricultural exports have expanded along with other exports.

She noted that India is expanding its economic activity to assist in solving global supply chain concerns.

Aside from the vaccine campaign, Ms. Georgieva lauded India’s assistance to its neighbours and other weaker nations. With regard to Sri Lanka, the IMF MD praised India’s assistance.

Mme Sitharaman urged the IMF to quickly assist Sri Lanka. Affirming the IMF’s continued strong engagement with Sri Lanka, the Finance Ministry said.

Hunger, rising costs, and power interruptions are affecting many people in Sri Lanka, resulting in significant protests against the government’s response.

The economic condition has led to massive rallies calling for the resignation of Prime Minister Mahinda Rajapaksa and President Gotabaya Rajapaksa.

Ms. Sitharaman and Ms. Georgieva expressed concern about recent geopolitical developments and their impact on the global economy.

She will next travel to San Francisco on April 24 to meet with business leaders and Stanford University academics and students, after her engagements in Washington. On April 27, she will fly to India.

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