G20 presidency, prudent fiscal policy, development path: Eco Affairs Secy lists why India was lauded at IMF, WB meeting
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2 min read • Updated: April 20, 2024, 12:19 PM
Summary
India’s presidency of the G20 Summit, during calendar year 2023, was the primary reason behind the appreciation drawn by the country, the economic affairs secretary said. He also pointed out that New Delhi’s prudent fiscal policy, along with a successful development path, drew applause from the participants at the joint meeting of the IMF and World Bank.
India drew widespread praise at the annual spring meeting of the World Bank and the International Monetary Fund (IMF), Economic Affairs Secretary Ajay Seth said. The meeting was held from April 17-19 in Washington, and was attended by policymakers representing almost all the major economies.
India’s presidency of the G20 Summit, during calendar year 2023, was the primary reason behind the appreciation drawn by the country, Seth said. He also pointed out that New Delhi’s prudent fiscal policy, along with a successful development path, drew applause from the participants at the spring meeting.
Finance Minister Nirmala Sitharaman was not leading the Indian delegation at the IMF-World Bank meeting this year. Her absence, as per reports, is due to the ongoing Lok Sabha elections.
Why India was lauded at IMF-World Bank meeting
“There is a widespread appreciation of Indian presidency of the G-20 in building consensus on several issues, relevant for global deployment, conducted of various meetings during the presidency as well as the leaders’ summit,” Ajay Seth, Economic Affairs Secretary told PTI on Friday, April 19.
India hosted the G20 Summit in New Delhi from September 9-10. The summit adopted a 37-page consensus declaration overcoming major differences on the Russia-Ukraine war and took several steps to ensure the stability of the global economy.
“There was also an appreciation that the very effective conduct of monetary policies and responsive and responsible fiscal policies is leading to maintaining its financial stability in emerging economies, including India amid global conditions,” Seth said.
Notably, India's fiscal deficit is estimated 5.8% of GDP in FY24. The government has set a target to reduce it to 5.1% in FY25.
There is also the recognition that India provides practical examples of following successful development paths, he added. The comment came in the backdrop of the IMF reiterating that India is one of the "world's bright spots".
"This year we expect economic growth at 6.8%. That is led by private consumption and a lot of public investment... India will contribute almost 17%of global growth. So that's one reason why we think it's a bright spot," Krishna Srinivasan, Director, Asia and Pacific Department, at the IMF told PTI on Friday.
With PTI inputs