While the world faces economic challenges in the face of several waves of COVID-19 pandemic, the International Monetary Fund (IMF) has praised India’s resilient economy while underlining the structural reforms the government has implemented in recent years.
IMF Director Kristalina Georgieva praised India’s well-targeted policy mix that has helped the Indian economy remain resilient during her meeting with Finance Minister Nirmala Sitharaman on Monday (local time) in Washington DC.
Ms Georgieva emphasized the resilience of India, which remains the fastest growing country in the world despite the challenges of the COVID-19 pandemic.
Ms Sitharaman had a bilateral meeting with Ms Georgieva on the sidelines of the IMF and World Bank spring meetings.
The finance minister and the MD of the IMF were joined by senior officials such as Mr Anantha V. Nageswaran, Chief Economic Advisor and Ms Gita Gopinath, FDMD of the IMF, the finance ministry said in an official statement.
At the meeting, they discussed several issues currently facing global and regional economies.
Ms Georgieva also referred to an effective policy mix followed by India that was well targeted. She praised India for its contribution to the IMF’s capacity development activities, the ministry added in the statement.
Ms Sitharaman explained India’s policy approach and said that accommodative fiscal policies have also been accompanied by major structural reforms, including the bankruptcy law and targeted aid to SMEs and other vulnerable areas.
Ms Sitharaman said the Monetary Authority fully supported these efforts and complemented them with an accommodative attitude.
The finance minister further stated that India has been helped by good agricultural production supported by a good monsoon during the COVID pandemic period. Agricultural exports, along with other exports, have also risen sharply.
India is embarking on new economic activities that will help solve some of the global supply chain problems, she added.
Ms Georgieva also praised India’s vaccination program and its assistance to neighboring countries and other vulnerable economies. The IMF’s MD particularly praised India’s aid to Sri Lanka in light of the ongoing economic crisis.
Ms. Sitharaman called on the IMF to support Sri Lanka and provide urgent financial assistance. The chief executive assured the finance minister that the IMF would continue to actively cooperate with Sri Lanka, the ministry said.
Sri Lanka is facing its worst economic crisis since independence with food and fuel shortages, rising prices and power cuts affecting a large number of people resulting in massive protests over the government’s handling of the situation.
The economic situation has sparked massive protests with demands for the resignation of Prime Minister Mahinda Rajapaksa and President Gotabaya Rajapaksa.
While discussing recent geopolitical developments, Ms Sitharaman and Ms Georgieva expressed concerns about its impact on the global economy and the challenges posed by rising energy prices.
Notably, once meetings in Washington are completed, Ms. Sitharaman will travel to San Francisco on April 24, where she will interact with business leaders and also interact with Stanford University faculty and students. She will leave for India on April 27.
(Except for the headline, this story has not been edited by NDTV staff and has been published from a syndicated feed.)