India took decisive steps to revitalise economic system after pandemic, says IMF MD

Kristalina Georgieva, the Managing Director of the International Monetary Fund on Thursday praised Modi authorities for taking “very decisive” steps to cope with the coronavirus pandemic and its financial penalties.
Speaking at a worldwide media roundtable on Thursday, the IMF Managing Director predicted a ‘less bad’ outlook for India within the upcoming World Economic Update as a result of efficient steps taken by the Modi authorities. The Bulgarian economist Kristalina Georgieva additionally requested the nation to do extra this 12 months to help an accelerated transformation of the economic system.
“When I called on everybody to stay tuned for January 26, that applies very much to India. You would see a picture in our update that is less bad. Why? Because the country actually has taken very decisive action, very decisive steps to deal with the pandemic and to deal with the economic consequences of it,” Georgieva mentioned.
The International Monetary Fund is scheduled to launch its World Economic Update on January 26.
Restrictions, lockdown together with coverage help labored nicely: IMF chief
Speaking about India, the IMF chief opined that it was a really dramatic lockdown for a rustic of this dimension of the inhabitants with folks clustered so intently collectively.
“Then India moved to more targeted restrictions and lockdowns. What we see is that transition, combined with policy support, seems to have worked well. Why? Because if you look at mobility indicators, we are almost where we were before COVID in India, meaning that economic activities have been revitalised quite significantly,” she mentioned.
She mentioned the steps taken by the Modi authorities on the financial coverage and the fiscal coverage facet is commendable. It is definitely barely above the typical for rising markets, she added.
According to Kristalina Georgieva, India has outdone rising markets, which on common have offered six per cent of the GDP. “Good for India is that there is still space to do more. If you can do more, please do,” Georgieva mentioned.
She added that 2021 is the 12 months to make use of and use it correctly in a extra focused method to help an accelerated transformation of the economic system. The IMF chief mentioned that it was wonderful to see how a lot quicker structural change takes place and policymakers should be leaning ahead on this atmosphere to help this structural transformation and to cushion the affect it has on these which can be on the shedding facet of it.
India has an urge for food for structural reforms, says IMF prime Economist
Georgieva mentioned that she is impressed by the urge for food for structural reforms that India is retaining. “We welcome that. No question those reforms, and actually that applies very much to South Africa… will determine competitiveness in the future. We need higher productivity. We need more vibrant and inclusive economies. And they are not going to fall from the sky. There have to be reforms that support them,” she mentioned.
Appreciating the truth that Modi authorities doesn’t quit on structural reforms, she mentioned, “And I’m saying, yes, do it! Because the world change is accelerating and economies have to be agile and adaptable to change. We have to be constantly leaning forward.”
At the identical time, she emphasised that one of many facets of India’s reforms which can be nonetheless lagging is on gender equality.
“I want to just stress it is scary to see how we are losing ground on gender equality over these months so fast. Women are front line workers…They are often in the informal economy, help cannot easily reach them, so they are hit, she said. ….once people start losing jobs, who is to lose jobs first? [Again] women are on the front line. Labour market participation in India for women has been low. It is shrinking…I know the government is paying attention, it is moving in that [direction], but there is so much space to tap into the productive potential of women and the entrepreneurial potential of women,” Georgieva mentioned.
In its October outlook, the IMF has projected India to contract by a large 10.3 per cent in 2020. However, India is more likely to bounce again with a formidable 8.8 per cent development fee in 2021, the worldwide monetary establishment had mentioned.