The finance ministry and the RBI have projected India’s economic growth to be around 6.5% in FY24 compared with 7.2% in FY23.
Despite the global economic slowdown, finance minister Nirmala Sitharaman on Saturday said India continues to be the fastest-growing large economy.
Speaking at the breakfast meeting of the IMF Board of Governors on the theme of “Dialogue on Policy Challenges” in Marrakech, Morocco, Sitharaman emphasised that a coordinated response of the global community will foster multilateralism in the spirit of ‘One Earth, One Family, One Future’.
“The union finance minister expressed concern with regard to a slowdown in global growth. However, India continues to be the fastest-growing large economy with growth at 7.8% during Q1 of FY 2023-24,” the finance ministry said on X.
Sitharaman had earlier said that domestic consumption and investment demand will drive economic growth, but inflationary pressures may remain elevated warranting greater vigilance by the government and the Reserve Bank of India (RBI).
The finance ministry and the RBI have projected India’s economic growth to be around 6.5% in FY24 compared with 7.2% in FY23.
Earlier this week, the International Monetary Fund raised its economic growth forecast for India from 6.1% to 6.3% for the current financial year. It has projected that the global growth will slowdown from 3.5% in 2022 to 3% this year. This remains well below the historical average.
Sitharaman noted the escalating global debt vulnerabilities and the importance of Global Sovereign Debt Roundtable would foster cooperation on debt issues and reforms in IMF policy to engage with members in debt distress. Under India’s G20 Presidency in 2023, G20 has called for swift conclusion of debt resolution for Ghana, Zambia Ethiopia and Sri Lanka.
Sitharaman also reiterated commitment to a strong, quota-based and adequately resourced IMF at the centre of the global financial safety net, and climate action on the principles of common but differentiated responsibilities and respective capabilities.
India is supportive of timely completion of the 16th General Review of Quotas (GRQ) in IMF to strengthen the Global Financial Safety Net. The GRQ by December 2023 is expected to address the long-delayed realignment of IMF members’ quota shares, which was last undertaken in 2008, to increase the voice of the emerging market and developing economies such as India.
https://www.financialexpress.com/policy/economy-india-continues-to-be-fastest-growing-large-economy-fm-nirmala-sitharaman-3273032/
