Nirmala Sitharaman holds bilateral meeting with IMF chief; discusses issues faced by global and regional economies

Finance Minister Nirmala Sitharaman today held a bilateral meeting with Managing Director of International Monetary Fund (IMF) Kristalina Georgieva and discussed issues of importance for India besides several issues currently being faced by the global and the regional economies. On the sidelines of the IMF-World Bank Spring Meetings in Washington, they raised concerns about the impact of the recent geopolitical developments on the global economy and the challenges linked to the rising energy prices. Explaining India’s policy approach, Ms Sitharaman mentioned that an accommodative fiscal stance was also accompanied by major structural reforms, including the bankruptcy code and targeted help to MSME and other vulnerable sections. The Finance Minister further highlighted that India has been helped by good agricultural output, supported by a good monsoon during the COVID pandemic period. She added that India is entering into new economic activities which will help resolve some of the global supply chain issues. Ms. Georgieva highlighted the resilience of India which remains the fastest-growing country across the globe despite challenges posed by the COVID-19 pandemic. She also referred to an effective policy mix followed by India that was well targeted. She lauded India for its contribution to the capacity development activities of the IMF. Ms Georgieva praised India’s vaccination programme and the help extended to its neighbour and other vulnerable economies. The IMF MD particularly brought reference to the help India is providing to Sri Lanka during their difficult economic crisis. Ms Sitharaman indicated that IMF should support and urgently provide financial assistance to Sri Lanka.