IMF Praised India For Robust Response To COVID Outbreak
IMF stated that India was one of the world's fastest-growing economies in the decade preceding the pandemic, pulling millions out of poverty While the economy had been improving previous to the COVID-19 shock, the epidemic posed enormous hurdles.
The International Monetary Fund (IMF) has praised Indian authorities for their rapid and robust reaction to the COVID-19 outbreak, noting the likelihood of a 'faster than expected recovery.'
On Friday, the IMF said, "Directors commended the authorities' response to the pandemic which includes scaled-up support to vulnerable groups, monetary policy easing and liquidity provision, accommodative financial sector and regulatory policies, and continued structural reforms." It further said, "Despite the pandemic, the authorities have continued to introduce structural reforms, including labour reforms and a privatisation plan."
However, the 'Article IV Consultations' report, referring to the article in the IMF agreement requiring annual assessments, warned of the dangers of the COVID-19 pandemic sneaking ahead, particularly because of its negative impact on people's development.
Along with the warning, the report included a ray of hope and stated, "At the same time, the recovery could also be faster than expected. Faster vaccination and better therapeutics could help contain the spread and limit the impact of the pandemic. In addition, successful implementation of the announced wide-ranging structural reforms could increase India's growth potential."
In retrospect, the IMF stated that India was one of the world's fastest-growing economies in the decade preceding the pandemic, pulling millions out of poverty While the economy had been improving previous to the COVID-19 shock, the epidemic posed enormous hurdles.
Because of "the reduction in economic activity, lower revenue, and pandemic-related assistance measures," the fiscal deficit has climbed to 8.5 per cent for the central government and 12.8 per cent for state governments, according to the IMF.
Despite governmental assistance bank lending growth has been sluggish, large corporations have profited from better circumstances in capital markets.