Finance Minister Nirmala Sitharaman on Tuesday met IMF managing director Kristalina Georgieva and discussed a range of issues, including impact of geopolitical situation on global growth.
During the meeting held on the sidelines of the ongoing annual spring meetings of the International Monetary Fund (IMF) and the World Bank, the IMF chief highlighted India’s well-targeted policy mix that has helped the country’s economy remain resilient even with a limited fiscal space. She also appreciated India’s help to Sri Lanka in tackling its economic crises and assured that the IMF would continue to actively engage with the island nation.
“Discussing the recent geopolitical developments, FM Smt. @nsitharaman and Ms @KGeorgieva raised concerns about its impact on global economy and the challenges linked to the rising energy prices due to it,” the finance ministry said in a tweet. With regard to Indian policy 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.
India is expected to record the highest growth rate among large economies of the world. As per the 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.
Congratulating India on its successful vaccination programme to control the spread of COVID-19, Georgieva also appreciated New Delhi for extending relief to other vulnerable countries to fight the pandemic. Sitharaman also met Sri Lankan finance minister Ali Sabry on the sidelines of IMF-WB Spring Meetings and discussed 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 had a meeting with 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 finance ministry said in a separate 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.