FM Nirmala Sitharaman stated on Saturday that India is the largest economy with the greatest rate of growth despite the global economic recession.
Speaking at the IMF Board of Governors breakfast meeting in Marrakech, Morocco, on the topic of “Dialogue on Policy Challenges,” Sitharaman emphasized the importance of a concerted response from the international community to promote multilateralism in the spirit of “One Earth, One Family, One Future.”
“The union finance minister expressed alarm over a downturn in global growth. However, with growth of 7.8% in Q1 of FY 2023–24, India is still the largest economy with the quickest rate of growth, according to the finance ministry.
Sitharaman had previously stated that domestic consumption and investment demand will fuel economic development, but inflationary pressures may remain elevated necessitating more vigilance by the government and the Reserve Bank of India (RBI).
The RBI and the finance ministry expect India’s GDP to expand by about 6.5% in FY24, down from 7.2% in FY23.
The International Monetary Fund increased its prediction of India’s economic growth from 6.1% to 6.3% for the current fiscal year earlier this week. According to its predictions, the rate of global growth will drop from 3.5% in 2022 to 3% this year. This is still far below the historical norm.
Sitharaman emphasized the significance of the Global Sovereign Debt Roundtable in fostering cooperation on debt concerns and changes to IMF policy to engage with members in debt crisis as well as the growing vulnerability of the world’s sovereign debt. The G20 has asked for the rapid conclusion of debt resolution for Ghana, Zambia, Ethiopia, and Sri Lanka during India’s G20 Presidency in 2023.
Additionally, Sitharaman reaffirmed her commitment to a robust, quota-based IMF at the center of the global financial safety net as well as to climate action based on the concepts of shared but distinct duties and respective capacities.
In order to improve the Global Financial Safety Net, India supports the prompt conclusion of the 16th General Review of Quotas (GRQ) in the IMF. By December 2023, the GRQ is anticipated to resolve the long-delayed realignment of IMF members’ quota shares, which was last completed in 2008. This will boost the voice of emerging markets and developing economies, including India.
