WASHINGTON, Apr 19: Finance Minister Nirmala Sitharaman on Tuesday discussed a range of issues, including the current geopolitical situation and its economic impact, with IMF chief Kristalina Georgieva, and highlighted the Indian Government’s commitment to support growth through capital expenditure.
During the meeting with Georgieva on the sidelines of the ongoing annual spring meetings of the International Monetary Fund (IMF) and the World Bank, Sitharaman also mentiond about India’s accommodative fiscal stance accompanied by major structural reforms and strong monetary policies that have helped in the post-pandemic recovery.
India is expected to record the highest growth rate among large economies of the world.
Georgieva, the Managing Director of IMF, mentioned about India’s well-targeted policy mix that has helped the economy to remain resilient even with a limited fiscal space. She also talked about the country’s resilience in remaining the fastest-growing economy across the globe despite challenges posed by the coronavirus pandemic.
According to a statement issued by the finance ministry, she appreciated India’s help to Sri Lanka in tackling the latter’s economic crisis and assured that the IMF would continue to actively engage with the island nation.
Sitharaman and Georgieva also raised concerns about the impact of geopolitical developments on the global economy and the challenges linked to the rising energy prices.
Russia-Ukraine war has led to a surge in prices of energy and commodities across the world.
About India’s policy approach on economic revival, Sitharaman highlighted the government’s commitment to support economic growth through capital expenditure (capex) and underlined that the country’s accommodative fiscal stance accompanied by major structural reforms and strong monetary policies have helped in its post-pandemic recovery.
As per the latest Economic Survey, the country may log 8-8.5 per cent GDP growth in the current fiscal.
To achieve high growth, the government has raised capex by 35.4 per cent for the financial year 2022-23 to Rs 7.5 lakh crore to continue the public investment-led recovery of the pandemic-hit economy. The capex last year was pegged at Rs 5.5 lakh crore.
Further, the finance minister said that India has been helped by robust agricultural output supported by a good monsoon during the pandemic period.
“Agricultural exports, along with other exports, have also sharply increased. India is entering into new economic activities which will help resolve some of the global supply chain issues,” the finance minister said.
Sitharaman also met Sri Lankan finance minister Ali Sabry on the sidelines of IMF-WB Spring Meetings and discussed the current economic situation and its approach towards addressing the prevailing challenges in Sri Lanka.
The Finance Minister assured her Sri Lankan counterpart that as a close friend and good neighbour, India will try to extend all possible cooperation and assistance.
Sitharaman also met Indonesia finance minister Sri Mulyani Indrawati on the sidelines of G20 Finance Ministers and Central Bank Governors (FMCBG) meeting.
“The two ministers discussed the current global situation and #G20 #Indonesian Presidency’s response to it, along with other #G20FMCBG agenda including #GlobalHealth, international financial architecture and #SustainableFinance,” the ministry said in a tweet.
Both the leaders highlighted the need for collective attention of G20 on energy price volatility, inflation pressure and the impact of the geopolitical tensions on the global economy. (PTI)
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