India is "a bright spot" in the world economy, says IMF chief

9 Sep 2022 , 02:53 PM

The managing director of the International Monetary Fund (IMF), Kristalina Georgieva, stated on Thursday that India’s economy remains a bright light despite global uncertainties and challenges.

The IMF restated its support for India’s bid for the 2019 G-20 presidency, which she announced during her meeting with Finance Minister Nirmala Sitharaman. According to a series of tweets from the Finance Ministry, both presidents were concerned about major cross-border repercussions caused by the geopolitical environment, tighter financial conditions, and big downside threats to the global economy.

Sitharaman and Georgieva acknowledged that low-income nations have been particularly affected by the effects of rising global inflation brought on by increases in food and energy costs as well as by international debt. The Finance Minister emphasized the need of guaranteeing everyone’s access to energy security.

She also emphasized the need for multilateralism and coordinated policy actions to mobilize sufficient financial resources for climate action, while pointing out that pledged monies from the rich economies have not yet materialized. She further stated that carbon pricing might not be a workable political tool for tackling climate change.

Both Georgieva and Sitharaman stressed the need for the 16th General Review of Quotas (GRQ) to be completed on schedule and in a way that tackles inequities and imbalances in the world economy during the meeting. Georgieva concurred with the Finance Minister that a consensus on GRQ should be found as soon as possible to reflect the altered standing of emerging market economies (EMEs) in the global order if the IMF is to continue to be relevant.

According to a tweet from the Finance Ministry, both presidents recognized the importance of regulating crypto assets and the necessity for a globally coordinated and synchronized strategy on the subject during the discussion. IMF was encouraged to take the lead in this situation by Sitharaman.

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