New Delhi: India is witnessing a 'V-shaped' recovery as per the latest several economic indicators, observes Union Finance Minister Nirmala Sitharaman. Addressing the Plenary Meeting of the International Monetary and Financial Committee (IMFC), the ministerial-level committee of the International Monetary Fund (IMF), through video-conference, the finance minister outlined the measures undertaken by the Indian government under the 'Aatmanirbhar Bharat' package to foster a quick and more robust economic recovery in India.
A Finance Ministry statement noted that that she mentioned that the 'V-shaped' pattern of recovery is being seen in several high-frequency indicators including manufacturing PMI that reached the highest level in last eight years in the month of September 2020, presenting a strong recovery prospect for the manufacturing sector. To stimulate consumer spending, measures worth $10 billion have been announced recently, Sitharaman added.
The discussions at the meeting were based on IMF Managing Director's Global Policy Agenda titled 'Catalysing a Resilient Recovery'. The members of the IMFC updated the committee on the actions and measures taken by member countries to combat Covid-19 and its adverse impacts. The Finance Minister also complimented IMF's Managing Director Kristalina Georgieva and the IMF for providing wise counsel to the economies across the globe and felt that IMF's assertion that a premature withdrawal of policy support could trigger liquidity shortfalls and insolvencies is relevant.
Noting that several low-income and developing countries are confronted with the challenge to protect and ensure livelihood for millions slipping below the poverty line, Sitharaman said that recovery and rehabilitation efforts in these countries must not be allowed to be undermined in any manner. The IMFC meets twice a year, once during the Fund-Bank Spring Meetings in April, and again during the Annual Meetings in October. The committee discusses matters of common concern affecting the global economy and advises the IMF on the direction of its work. This year, due to the Covid-19 outbreak, both the Spring and the Annual meetings took place through video-conference.