IMF on Mar 30 released a paper on the Review of Institutional View (IV) on the Liberalization and Management of Capital Flows. The IV was adopted in 2012 and provides the basis for consistent Fund advice on policies related to capital flows.
“We have been projecting a quite robust growth for India. Yes, there is a small downgrade versus our previous projection from 9.5 pc to 9 pc for 2022. But then we also have a small upgrade for 2023, because we think that we'll see stable growth not very different from (those projected by) the (Union) Minister of Finance,” Georgieva said
In its latest update of World Economic Outlook on Tuesday, the International Monetory Fund, which had in October last year projected a 9.5 per cent GDP growth for India, put the forecast for the next fiscal FY23 (April 2022 to March 2023) at 7.1 per cent.
The meeting comes days after the IMF announced that she is being promoted as its First Deputy Managing Director.
Gopinath would replace Geoffrey Okamoto who plans to leave the Fund early next year.
"We welcome India's announcement at the COP26 of new targets to increase reliance on renewables and reduce the carbon intensity of its economy, including to adopt net zero target by 2070," Gerry Rice, Director, Communication Dept, IMF, said.
Calling it a worrisome development, sources have said that the IMF staff was so far busy in number-crunching mainly on fiscal framework, external front and power sector.
The IMF has projected India's economic growth at 9.5 per cent in FY2021-22 and 8.5 per cent in 2022-23. Headline inflation is projected at 5.6 per cent in 2021-22, amid elevated price pressures.
“The crisis is exacerbating poverty and inequalities, while climate change and other shared challenges are becoming more pressing and require our urgent attention,” it added.
IMF chief economist Gita Gopinath on Tuesday said that India is doing well in vaccinating people.
Georgieva said she was looking forward to meeting with the IMF board to brief them on her actions.
Sources said that Finance Minister Shaukat Tarin was keen to conclude the parleys on a positive note during face-to-face meetings with the top IMF management in Washington on October 15.
IMF said it was deeply concerned with economic conditions in Afghanistan, urging the international community to take urgent steps to stall a "looming humanitarian crisis" in the country.
At the start of the pandemic, food supply chain disruptions, a shift from food services (such as dining out) towards retail grocery and consumer stockpiling (coupled with sharp appreciation of US dollar) pushed up consumer food price indices in many countries.
"Gradually increasing price on carbon encourages innovation and transition to renewable energy, clean mobility, and low carbon technologies," IMF MD said in prepared remarks at an event hosted by the Brookings Institution.
The International Monetary Fund has proposed a USD 50 billion global vaccination plan that would cover at least 40 percent of the global population by the end of 2021 and at least 60 percent by the first half of 2022.
India is on the right track and is innovating on the policy side, including on digital identity and payments, but it also needs to capture all the segments of the financial market and institutions to make sure that every piece fits together like a puzzle to fuel growth in the country, according to a top IMF official.
Inflation and depleted incomes have raised household indebtedness and food insecurity, it said, urging the IMF and the World Bank to scale up its work to address rising levels of food insecurity and to support countries in achieving Sustainable Development Goal 2 and nutrition for all.
The State Bank of Pakistan has adopted a timely set of measures, including a lowering of the policy rate and new refinancing facilities, to support liquidity and credit conditions and safeguard financial stability.
Hit hard by coronavirus outbreak, Asia is expected to witness zero per cent growth in 2020, its worst growth performance in almost 60 years, but still the world's largest and most populous continent is likely to fare better than other regions in terms of activity, IMF said.
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