Nirmala Sithraman discusses impact of geopolitical situation on global growth with IMF chief

Union Minister for Finance Nirmala Sitharaman had a bilateral meeting with Kristalina Georgieva, Managing Director, International Monetary Fund (IMF), on the sidelines of the International Monetary Fund-World Bank (IMF-WB) Spring Meetings in Washington D.C. on Tuesday.

According to a statement by the Finance Ministry, during the meeting, they discussed issues of importance for India besides several issues currently being faced by the global and the regional economies.

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.

Georgieva praised India’s vaccination programme and the help extended to its neighbour and other vulnerable economies.

Sitharaman indicated that IMF should support and urgently provide financial assistance to Sri Lanka. The Managing Director assured the Finance Minister that the IMF would continue to actively engage with Sri Lanka.

Discussing the recent geopolitical developments, Sitharaman and Georgieva raised concerns about its impact on global economy and the challenges linked to the rising energy prices due to it.

The Finance Minister further stated that India has been helped by good agricultural output, supported by a good monsoon during the COVID 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, she concluded.