International Monetary and Financial Committee

In News: Union Minister for Finance & Corporate Affairs attended the Plenary Meeting of the International Monetary and Financial Committee (IMFC) at the International Monetary Fund Headquarters during the Annual Meetings 2022 in Washington DC.

Outcomes:

• Indian economy will stay on course and is projected to grow at 7% in FY 2022-23
• This is an outcome of the conducive domestic policy environment and Government’s focus on key structural reforms to boost growth.
• India is leading the world in terms of digital payments innovations with our transaction cost being the lowest in the world.
• Suggestion to IMF: IMF needs to increase resources available for emerging and low-income countries to safeguard the global financial system and increase the voting rights of emerging market economies (EMES) in line with their relative positions in the world economy.
• Global Risks: A key downside risk to global recovery is the exacerbated debt distress in many low-income countries. It is, therefore, important that the Fund provides them necessary support to deal with balance of payments related vulnerabilities.
• Climate change: the importance of the multilateral approach with the principles of equity; and common but differentiated responsibilities and respective capabilities.
• India has set out an ambitious climate action path through our updated Nationally Determined Contributions which demonstrate India’s commitment at the highest level for decoupling of economic growth from greenhouse gas emissions.
• Transfer of climate finance and low-cost climate technologies from developed to the developing countries has assumed critical significance.
• There is a need for coordinated responses of the global community to help address the strategic challenges the world faces today.

Source: PIB