India Worried About Future of Global Economy, Says Nirmala Sitharaman

A people-centered, equity-driven, consensus-based, and collaborative strategy is urgently needed to address the problems of global development, according to Nirmala Sitharaman.

Even though the country’s economy is expected to grow by more than 6% this year, India is still concerned about the geopolitical situation and the world economy, according to Union Finance Minister Nirmala Sitharaman.

Additionally, she warned the world’s leaders that the current challenges and frayed supply chains had put a lot of strain on the global economy, exemplified by persistently high-interest rates, pressures from northbound inflation, and depreciating currencies.

She stated this during the 107th conference of the Development Committee during the annual conference of the (IMF) International Monetary Fund and the World Bank. The recent turmoil in the banking sector in some advanced economies has increased the challenges to the global economic recovery and increased fiscal pressures, especially on EMDEs and LDCs.

The availability of food, fuel, and fertilizer is still being strained, putting the security of food and energy sources at risk. The minister noted that this has a disproportionately negative impact on the poor, the weak, and the marginalized, especially in developing nations.

A people-centered, equity-driven, consensus-based, and collaborative strategy is urgently needed to address the problems of global development, according to the Union minister. She explained to the “Development Committee” that in light of the WBC’s “Evolution RoadMap” discussion, “we motivate the (WBG) World Bank Group to evolve into an immense and better bank, which is ‘fit for purpose’ to deal with the new global challenges. These circumstances present multilateralism with greater challenges than ever before.

She urged all stakeholders and shareholders to develop a creative, audacious, and robust strategy to turn the WBG into an organization that is capable of successfully handling both current and upcoming difficulties during her speech.

We anticipate a WBG that uses creative resource mobilization strategies, realizes its full possibility as a knowledge and solution bank, and fully utilizes its competitive advantage to create a better world. Added Ms. Sitharaman.

Despite obstacles and global headwinds, Ms. Sitharaman told the “Development Committee” that the IMF expects India to see economic growth of more than 6%, making it the only large nation to do so.

The Indian economy has demonstrated resilience in managing the volatility of the pandemic (Covid) as well as geopolitical spill-over, she added, with a manageable current account deficit and the highest growth rate among the major economies in the financial year 2023.

As indicated by the expected GDP growth of 9.1% for the last fiscal year, the minister said that an upbeat business environment, strong industrial output, and rapid vaccination range against Covid had supplied a strong momentum to the Indian economy.

In FY 22–23, India staged a full recovery, outpacing many other nations, and put itself on an upward pre–pandemic economic path, according to her.

In addition to ensuring a speedy economic rebound, the (anti- Covid) unmatched immunization movement has also ensured the economic possibilities for the remain of this year. The boost for medium-term growth has been supplied by the successful implementation of the labor and agricultural reforms, the minister stated.

According to Ms. Sitharaman, India’s “Long-Term Low-Carbon Development Strategy” envisions a pathway for low-carbon growth that involves spending money on the creation of new infrastructure, deploying new technologies, and other transaction expenses.

By India’s climate objectives, she noted, the Union Budget has also promoted energy transition by supporting the domestic manufacture of solar power supplies and batteries.

According to Ms. Sitharaman, the WBG should continue to concentrate on its mission of ‘Promoting Shared Prosperity’ and ‘Ending Extreme Poverty’ as well as its vision of a ‘World Free of Poverty’.

This being said, she stressed the importance of making sure the twin objectives are accomplished in a way that is inclusive to benefit everyone, resilient o protect them from developmental shocks, and sustainable from a social, economic, and environmental perspective o ensure the welfare of future generations. 

While we agree that global issues like climate change, pandemics, and fragility require attention, it’s also critical to concentrate on issues like food insecurity, affordable access to water and energy, digitalization, and debt sustainability.

It is essential to agree on the definitions of the problems facing global development, according to Ms. Sitharaman, and to “develop selectivity criteria that are compatible with the WBG’s mandate and its proximate advantage.”

3 thoughts on “India Worried About Future of Global Economy, Says Nirmala Sitharaman”

Leave a Comment