Sitharaman discusses geopolitical issues with IMF chief; highlights India's efforts to support growth

Washington: Finance Minister Nirmala Sitharaman on Tuesday discussed a range of issues, including the current geopolitical situation and its economic impact, with IMF chief Kristalina Georgieva, and highlighted the Indian government's commitment to support growth through capital expenditure.

During the meeting with Georgieva on the sidelines of the ongoing annual spring meetings of the International Monetary Fund (IMF) and the World Bank, Sitharaman also mentiond about India's accommodative fiscal stance accompanied by major structural reforms and strong monetary policies that have helped in the post-pandemic recovery.

India is expected to record the highest growth rate among large economies of the world.

Georgieva, the Managing Director of IMF, mentioned about India's well-targeted policy mix that has helped the economy to remain resilient even with a limited fiscal space. She also talked about the country's resilience in remaining the fastest-growing economy across the globe despite challenges posed by the coronavirus pandemic.

According to a statement issued by the finance ministry, she appreciated India's help to Sri Lanka in tackling the latter's economic crisis and assured that the IMF would continue to actively engage with the island nation.

Sitharaman and Georgieva also raised concerns about the impact of geopolitical developments on the global economy and the challenges linked to the rising energy prices. Russia-Ukraine war has led to a surge in prices of energy and commodities across the world.

About India's policy approach on economic revival, Sitharaman highlighted the government's commitment to support economic growth through capital expenditure (capex) and underlined that the country's accommodative fiscal stance accompanied by major structural reforms and strong monetary policies have helped in its post-pandemic recovery.