Even as the world faces economic challenges in the face of various waves of the COVID-19 pandemic, the The International Monetary Fund (IMF) has lauded India’s resilient economy while highlighting the structural reforms implemented by the government in recent years.
IMF Managing Director Kristalina Georgieva, meeting with Finance Minister Nirmala Sitharaman in Washington DC on Monday (local time) hailed India’s well-aimed policy mix, which has helped the Indian economy remain resilient.
Georgieva highlighted the resilience of India, which remains the fastest growing country in the world despite the challenges posed by the COVID-19 pandemic.
Sitharaman had a bilateral meeting with Georgieva on the sidelines of the IMF-World Bank spring meeting.
The Treasury Secretary and IMF Managing Director were accompanied by senior officials including Anantha V. Nageswaran, Chief Economic Advisor, and Gita Gopinath, IMF FDMD, the Treasury Department said in an official statement.
During the meeting, they discussed several issues currently facing the global and regional economy.
Georgieva also pointed to an effective policy mix, followed by India which is well aligned. She commended India for its contribution to the IMF’s capacity development activities, the ministry added in the statement.
Explaining India’s policy approach, Sitharaman mentioned that an accommodative fiscal stance has also been accompanied by major structural reforms, including the bankruptcy law and targeted assistance to MSMEs and other vulnerable groups.
Sitharaman said the Monetary Authority fully supported these efforts and complemented them with a accommodating attitude.
The finance minister further stated that India has been helped by good agricultural production aided by good monsoons during the COVID pandemic. Agricultural exports have also increased sharply along with other exports.
India is entering new economic activities that will help solve some of the global supply chain problems, she added.
Georgieva also hailed India’s immunization program and aid to its neighbors and other vulnerable economies. The IMF executive director particularly praised India’s assistance to Sri Lanka amid the ongoing economic crisis.
Sitharaman called on the IMF to support Sri Lanka and provide urgent financial assistance. The Managing Director assured the Minister of Finance that the IMF would continue to work actively with Sri Lanka, the ministry said.
Sri Lanka is facing its worst economic crisis since independence, with food and fuel shortages, soaring prices and power outages affecting many, prompting massive protests over the government’s handling of the situation.
The economic situation has led to massive protests demanding the resignation of Prime Minister Mahinda Rajapaksa and President Gotabaya Rajapaksa.
Discussing recent geopolitical developments, Sitharaman and Georgieva raised concerns about their impact on the global economy and the challenges related to rising energy prices.
Specifically, following the conclusion of the Washington meetings, Sitharaman will travel to San Francisco on April 24 where she will engage with business leaders and also interact with Stanford University faculty and students. She will leave for India on April 27th.
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