International community counts a lot on India's G-20 leadership: IMF MD

At a time when the world is faced with continued economic slowdown and social distress, the international community counts a lot on India’s leadership of G-20, the Managing Director of the International Monetary Fund (IMF) said on Thursday.

Significantly, “India, which is the president of G-20 countries, remains among the countries that perform better than global average and by a good percentage,” IMF Managing Director Kristalina Georgieva told reporters during a media roundtable.

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G-20 leadership

India formally assumed the G-20 (Group of 20) Presidency on December 1. The next G-20 Leaders Summit at the level of Heads of State/Government is scheduled to be held on September 9 and 10 in New Delhi.

“We count a lot on India’s leadership of the G-20. Because it is such a critical time for the world to protect its own well-being by protecting the integrated global economy. I hope that India will do that huge global service keeping us together,” she added.

Georgieva also lauded India for embracing digitization.

“What we see as working extremely well for India is how the country has taken to digitization that was accelerated by COVID-19 to be a strong comparative advantage, both for public policy and for private sector growth,” the IMF Managing Director said in response to a question.

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For public policy, because the combination of digital ID and digital public infrastructure allows India to move policy support on a digital platform and to target extremely well those who are recipients of the support as well as to become a bright example of vaccinations done in a prioritized and highly effective manner, she noted.

“On the private sector side, because that has become a fertile ground for very rapid expansion of branded financing and enterprises. And that India intends to take to the G-20 as an area to build comparative strength,” she said.

G-20 priorities

According to Georgieva, one of the priorities in the G-20 is how to make digitization built on a public platform, public infrastructure that allows everybody to plug in and most importantly, reduces costs of digitization; how that can be a source of growth and employment. So that is definitely one area.

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India, she noted, has done some painful reforms which are now paying off. The country, she said, faces difficulties on the climate front, very dramatic impact on agriculture because of very severe vulnerability of climate shocks, especially droughts and high temperatures.

“India is, of course, impacted by developments in Asia. Sri Lanka is a neighbour, Pakistan is a neighbour — these are countries that are volatile. And, of course the fact that China has slowed down so dramatically, it has seen impact for the whole of Asia”, Georgieva said.

She also stated, “If I’m in India today, I would worry more about what is happening in the rest of the world and how this is going to impact me, than what are the domestic factors”.

(With Agency inputs)