IMF lauds Indian economy; Calls it a “Bright Spot”

RSTV Bureau

imfThe International Monetary Fund (IMF) has lent a fillip to the economic situation in India with its Chief Christine Lagarde calling India among the few “bright spots” in the global economy. The remarks from the IMF Chief came at the meeting of the Group of Twenty (G20) Finance Ministers and Central Bank Governors, held in Ankara against the backdrop of concerns over Chinese economic slowdown.

The fragile economic situation in China has led to the slowdown in world markets off-late.

Speaking at the economic platform of G20, Lagarde told the gathering of delegates that between advanced and emerging economies, there are problems at most places in the advanced world while in emerging economies, there are problems in China. The IMF, however, claimed that the problem in China is not that big as the stock markets are reflecting.

Among emerging economies if there is any growth, that is in India. India is among the few bright spots in the global economy, the officials said quoting Christine Lagarde.

According to the officials present at the meeting, RBI Governor Raghuram Rajan said that they are surrounded by economic gloom. Mr. Rajan is believed to be probably hinting at concerns over slowdown in China.

Policymakers from South Korea, Australia, China and the US were among those who were present at the G20 meeting in the Turkish capital city Ankara.

Meanwhile, China assured other G20 member countries that its economy will not collapse though it would continue to grow at a slower pace.

Earlier in the day, Raghuram Rajan said that the global economies witnessing sustainable growth need to hike rates although not in a “one go, big bang” manner.

Currency devaluations at a time when the global demand is sluggish is a major threat to stability in the global economy, India had said. Continuing on the steps to counter the threat of economic slowdown, India on Thursday deprecated the recent devaluation of major currencies followed by currency depreciation in a large number of emerging markets which raises the risk of competitive devaluations.

(With inputs from the PTI)