Indian Economy To Contribute More Than 15% Of Global Growth: IMF MD

This year and next, emerging markets and developing economies are expected to account for roughly 80 per cent of global growth and India is expected to contribute more than 15 per cent of the total, according to the International Monetary Fund's Managing Director Kristalina Georgieva.

Georgieva described India's strong economic performance as a “bright spot,” adding that, in addition to being the global growth engine, India is uniquely positioned to bring countries together.

“At a time of heightened uncertainties for the global economy, India's strong performance remains a bright spot. It's therefore fitting that the Group of Twenty finance ministers and central bank governors will meet this week in Bengaluru,” she said.

Wednesday marked the start of the Second Finance and Central Bank Deputies Meeting under India's G20 Presidency. G20 finance ministers and central bank chiefs will attend the meeting on Friday.

The meeting in the summer retreat of Nandi Hills is the first major event of India's G20 presidency, and the conflict in Ukraine is expected to dominate the proceedings.

Russia's military operation in neighbouring Ukraine dominated headlines for the majority of 2022, weighing on global growth, which was already hampered by inflationary pressures.

According to the IMF, while this will be another difficult year, it may mark a turning point, with inflation declining and growth bottoming out.

“Indeed, while our most recent projections show global growth slowing to 2.9 per cent this year, we anticipate a modest rebound to 3.1 per cent in 2024,” Georgieva said.

The first G20 Finance Ministers and Central Bank Governors (FMCBG) meeting under the G20 Indian Presidency is expected to address some of the most pressing global economic issues later this week.

It is expected to cover topics such as strengthening multilateral development banks to address common global challenges in the twenty-first century, financing for resilient, inclusive, and sustainable “cities of tomorrow” and leveraging Digital Public Infrastructure (DPI) to advance financial inclusion and productivity gains.

The sessions will also address global economic, healthcare and international taxation issues.

The discussions at the G20 FMCBG meeting, which will be jointly chaired by Union Finance Minister Nirmala Sitharaman and RBI Governor Shaktikanta Das on 24 and 25 February, are intended to provide a clear mandate for the various work streams of the G20 Finance Track in 2023.

The IMF, World Bank and India's G20 presidency are convening a new Global Sovereign Debt Roundtable to advance the cause of debt restructuring.

“We will meet in person for the first time this week in Bengaluru—and pave the way for creditors, both public and private and debtor countries to work together, assess existing shortcomings and best ways to address them,” she said.