Despite global headwinds, Indian economy will stay on course: Nirmala Sitharaman

Despite global headwinds, Indian economy will stay on course: Nirmala Sitharaman

Finance Minister Nirmala Sitharaman has said that the Indian economy will remain on its way despite global adversities and is projected to grow at 7 per cent in FY 2022-23, thanks to a favorable domestic policy environment and focus on major structural reforms. To do.

Sitharaman’s remarks came during her intervention at the plenary session of the International Monetary Finance Committee (IMFC) on Friday.

He said the meeting is taking place at a time when the global economic outlook is beset by major downside risks: growth slowdown in major economies, cross-border impacts due to the current geopolitical situation, inflationary pressures due to growth in food and energy Prices have adversely affected vulnerable economies.

“Despite global adversities, the Indian economy will remain on the right track and is projected to grow at seven per cent in FY 2022-23. This is in line with the conducive domestic policy environment and the government’s focus on major structural reforms to boost growth. result,” she said.

He told IMFC members that the Government of India has taken initiatives to protect growth by advancing inflation management.

He said that the government has ensured the availability of free food grains to more than 80 crore vulnerable families for the last 25 months through the country’s vast public distribution network.

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Bringing financial services to the last mile of the poor has been a prime priority of the government and is supported by India’s digital public good infrastructure.

“Today, India is the world leader in digital payment innovations and our transaction costs are among the lowest in the world,” Sitharaman said.

Noting that the IMF needs to increase the resources available to emerging and low-income countries to safeguard the global financial system, Sitharaman underlined that the closing vote of the 16th General Review of Quotas (GRQ) by December 15, 2023 It is important to increase the rights. Emerging market economies (EMES) corresponding to their relative position in the world economy.

India’s quota in the IMF, which determines the voting share in the multilateral lending agency, is 2.75 per cent. China’s quota is 6.4 percent and that of the US is 17.43 percent.

A general review allows the IMF to assess the adequacy of quotas in relation to both members’ balance of payments in financial needs and the fund’s ability to meet those needs.

Noting that a major downside risk to the global recovery is debt crises in many low-income countries, Sitharaman said it is therefore important that the IMF provides necessary support to tackle balance of payments-related vulnerabilities.

As such, they welcomed the IMF’s new Food Shock Window initiative to help countries deal with food insecurity.

On climate change, he emphasized the importance of a multilateral approach with principles of equality and common but differentiated responsibilities and respective capabilities.

India has set an ambitious climate action path through its updated nationally determined contributions that demonstrate India’s commitment at the highest level to reduce economic growth from greenhouse gas emissions.

“The transfer of climate finance and low-cost climate technologies from developed countries to developing countries has assumed significant importance,” Sitharaman said.

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