Despite global headwinds, the Indian economy will stay course.
31 Oct 2022
The Indian economy will stay course despite global headwinds and is projected to grow by seven percent in fiscal 2022–23, minister of finance Nirmala Sitharaman has said, attributing this to the conducive domestic policy environment and specialization in key structural reforms.
Sitharaman's remarks came during her intervention at the plenary session of the International Monetary Committee (IMFC) on Friday.
The meeting itself, she said, is being held at a juncture when the worldwide economic outlook is clouded by key downside risks: a growth slowdown in major economies; cross-border effects due to the ongoing geopolitical situation; and inflationary pressures led by escalating food and energy prices that have adversely impacted vulnerable economies.
Despite global headwinds, the Indian economy will stay course and is projected to grow by seven per cent in FY 2022–23. She said this is often an outcome of the conducive domestic policy environment and the government's focus on key structural reforms to boost growth.
She told members of the IMFC that the Indian government has taken initiatives to guard growth while pursuing inflation management.
She said the government has ensured the availability of free food grains to more than 800 million vulnerable families for the past 25 months through the country's massive public distribution network.
Today, India is leading the planet in terms of digital payments innovations, with our transaction costs being rock bottom in the world, Sitharaman said.
Of the view that the IMF must increase resources available for emerging and low-income countries to safeguard the global financial system, Sitharaman underscored that completing the 16th General Review of Quotas (GRQ) by December 15th, 2023 is significant for increasing the voting rights of emerging market economies (EMES) in line with their relative positions in the world economy.
India's quota within the IMF, which determines voting shares within the multilateral lending agency, is 2.75 percent. China's quota is 6.4 percent which in the US is 17.43 percent.