International Monetary Fund's (IMF) Managing Director Kristalina Georgieva on Thursday said that despite global uncertainty and headwinds, India continues to be a bright spot in the global economy.
She made the statement during her meeting with Finance Minister Nirmala Sitharaman, where India's upcoming G-20 Presidency was also discussed and the IMF reiterated its support to India's candidature.
Both the leaders shared concerns on key downside risks to the global economy and the cross-border effects due to the geopolitical situation and tighter financial conditions, the Finance Ministry said in a series of tweets.
Sitharaman and Georgieva recognised the fact that the effect of increase in global inflation due to rise in food and energy prices as well as international debt has impacted low-income countries the most.
The Finance Minister underlined the need for ensuring energy security for all.
She also reiterated the importance of coordinated policy measures and multilateralism for mobilising adequate financial resources for climate action, while noting that committed funds by the developed economies are yet to become available.
She also added that carbon pricing may not be a feasible policy tool for climate action.
In the meeting, Georgieva and Sitharaman both underlined the importance of timely conclusion of 16th General Review of Quotas (GRQ) in a way that addresses inequity and imbalances in the global economy.
Georgieva agreed with the Finance Minister that for the IMF to remain relevant, it is important that a consensus on GRQ should be reached at the earliest to reflect the changed status of emerging market economies (EMEs) in the world order.
The significance of regulating crypto assets and a need to have a globally coordinated and synchronised approach on the matter was felt by both the leaders during the meeting, the Finance Ministry's tweet said.
Sitharaman urged upon IMF to play a lead role in this regard.