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

The Indian economy will stay on course despite global headwinds and is projected to grow at seven per cent in fiscal 202223 Finance Minister Nirmala Sitharaman has said attributing this to the conducive domestic policy environment and focus on key structural reformsSitharamans remarks came during her intervention at the plenary session of the international Monetary Finance Committee IMFC on FridayThe meeting itself she said is being held at a juncture when the global economic outlook is clouded by key downside risks growth slowdown in major economies crossborder effects due to the ongoing geopolitical situation inflationary pressures led by escalating food and energy prices that have adversely impacted vulnerable economiesDespite global headwinds the Indian economy will stay on course and is projected to grow at seven per cent in FY 202223 This is an outcome of the conducive domestic policy environment and the governments focus on key structural reforms to boost growth she saidShe told members of the IMFC that the Indian Government has taken initiatives to protect growth while pursuing inflation managementThe government has ensured the availability of free food grains to more than 800 million vulnerable families for the past 25 months through the countrys massive public distribution network she saidAlso Read Government does not interfere in functioning of ED Nirmala SitharamanLastmile delivery of financial services to the poor has been a key priority of the government and this has been aided by Indias digital public good infrastructureToday India is leading the world in terms of digital payments innovations with our transaction cost being the lowest in the world Sitharaman saidOf the view that the IMF needs to increase resources available for emerging and lowincome countries to safeguard the global financial system Sitharaman underscored that concluding the 16th General Review of Quotas GRQ by December 15th 2023 is vital for increasing the voting rights of emerging market economies EMES in line with their relative positions in the world economyIndias quota in the IMF which determines voting shares in the multilateral lending agency is 275 per cent Chinas quota is 64 per cent and that of the US is 1743 per centA general review allows the IMF to assess the adequacy of quotas in relation to both the members balance of payments in financing needs and the Funds ability to help meet those needsObserving that a key downside risk to global recovery is the exacerbated debt distress in many lowincome countries Sitharaman said it is therefore important that the IMF provides the necessary support to deal with the balance of paymentsrelated vulnerabilitiesAs such she welcomed IMFs recent initiative of a new food shock window to help countries address food insecurityOn climate change she emphasised the importance of a multilateral approach with the principles of equity and common but differentiated responsibilities and respective capabilitiesIndia has set out an ambitious climate action path through its updated Nationally Determined Contributions that demonstrates Indias commitment at the highest level to decoupling economic growth from greenhouse gas emissionsTransfer of climate finance and lowcost climate technologies from developed to developing countries has assumed critical significance Sitharaman saidThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever