Count a lot on India’s G-20 leadership, says IMF MD Kristalina Georgieva


International Monetary Fund’s (IMF) Managing Director Kristalina Georgieva has said that the international community counts a lot on India’s leadership of G-20, at a time when the world is faced with continued economic slowdown and social distress.

While speaking to reporters during a media roundtable, she said, “India, which is the president of G-20 countries, remains among the countries that perform better than global average and by a good percentage.”

India formally assumed the G20 (Group of 20) Presidency on 1 December. The next G20 Leaders’ Summit at the level of Heads of State/Government is scheduled to be held on 9-10 September in New Delhi.

“We count a lot on India’s leadership of the G-20. Because it is such a critical time for the world to protect its own wellbeing by protecting the integrated global economy. I hope that India will do that huge global service keeping us together,” she said.

Georgieva also lauded India for embracing digitization.

“What we see us working extremely well for India is how the country has taken digitization that was accelerated by COVID-19 to be a strong comparative advantage, both for public policy and for private sector growth,” the IMF Managing Director said in response to a question.

For public policy, because the combination of digital ID and digital public infrastructure allows India to move policy support on a digital platform and to target extremely well those who are recipients of the support as well as to become a bright example of vaccinations done in a prioritized and highly effective manner, she noted.

“On the private sector side, because that has become a fertile ground for very rapid expansion of branded financing and enterprises. And that India intends to take to the G-20 as an area to build comparative strength,” she said.

According to Georgieva, one of the priorities in the G-20 is how to make digitization built on a public platform, public infrastructure that allows everybody to plug in and significantly reduces costs of digitization; how that can be a source of growth and employment. So that is definitely one area.

India, she noted, has done some painful reforms which are now paying off. The country, she said, faces difficulties on the climate front, very dramatic impact on agriculture because of very severe vulnerability of climate shocks, especially droughts and high temperatures.

“India is of course impacted by developments in Asia. One of the countries — Sri Lanka is a neighbour, Pakistan is a neighbour — these are countries that are volatile. And, of course the fact that China has slowed down so dramatically, it has seen impact for the whole of Asia.

“If I’m in India today, I would worry more about what is happening in the rest of the world and how this is going to impact me, than what are the domestic factors.” Georgieva said.

Georgieva also said that said 2023 would be another “tough year” for the global economy, and inflation remained stubborn, but she did not expect another year of successive downgrades like those seen last year, barring unexpected developments. IMF is not expected to downgrade its forecast for 2.7% growth in 2023, the head of the global lender said on Thursday. It noted that the concerns about an oil price spike had failed to materialize and labor markets remained strong

Earlier, IMF Deputy Managing Director Antoinette Sayeh had said that the country is a relative bright spot in the world economy today, growing at rates significantly above its peer average.

(With inputs from ANI)

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