India takes leading role in calling for multilateral bank reforms
India has also adopted another two-pronged approach to promote change: Setting up a fund with the UN for developing countries and working with the BRICS on the New Development Bank.
The International Monetary Fund (IMF) on Wednesday said that it supports India’s proactive decision of a imposing a nationwide lockdown in its fight against the Coronavirus pandemic.
Backing India’s decision to place 1.3 billion people under lockdown, Chang Yong Rhee, the Director of the IMF’s Asia and Pacific Department said, “India entered the pandemic turmoil in the midst of a credit crunch-induced slowdown and its recovery prospect becomes more uncertain”.
“Despite the economic slowdown, the government implemented a nationwide lockdown and we support India’s proactive decision,” he said.
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A day earlier, the IMF in its World Economic Outlook had forecast India’s growth rate to be 1.9 per cent in 2020.
It, however, projected India to be the fastest growing major economy this year in a world plunged into a recession by the Coronavirus pandemic, despite drastically slashing its growth rate.
The World Economic Outlook (WEO) report released on Tuesday by Chief Economist Gita Gopinath expects India to rebound in the next fiscal year with a growth rate of 7.4 per cent, more than the projected 6.5 per cent in the January update.
The WEO presents a dark picture of the world with the global economy shrinking by 3 per cent this year.
India and China, with a projected growth rate of 1.2 per cent, stand out with their pluses in a sea of minuses on the WEO chart of growth projections.
The developed economies, projected shrink by 6.9 per cent, bear the brunt of the downturn.
The US economy is to shrink by 5.9 per cent and the Euro area by 7.5 per cent, according to the WEO.
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