Sitharaman notes that multilateralism has become more critical in the face of “extraordinary uncertainty”.
Sitharaman notes that multilateralism has become more critical in the face of “extraordinary uncertainty”.
Finance Minister Nirmala Sitharaman has underscored the need to bail out countries facing debt pressures due to the uncertainty caused by the pandemic and recent geopolitical developments.
During a meeting with World Bank Group President David Malpass on Friday, Sitharaman said India remained concerned about risks to the global recovery due to rising uncertainty amid rising geopolitical tensions.
The Treasury Secretary, who is visiting the US to attend the 2022 IMF-WB spring meeting, indicated that multilateralism has become more critical as the world navigates a period of exceptional uncertainty, the Treasury Department said in a statement.
“Due to the pandemic and recent geopolitical developments, the World Bank has to help countries facing debt problems. In particular, the World Bank must pay special attention to Sri Lanka before an unprecedented economic situation,” she said.
Sri Lanka, a neighboring nation of India, is grappling with the worst economic crisis on record, compounded by a shortage of foreign exchange and a balance of payments crisis.
The country’s economic crisis is partly caused by a lack of foreign exchange, which has resulted in the country being unable to afford to import basic necessities and fuel, leading to acute shortages and very high prices.
The island nation is witnessing large-scale protests over the government’s handling of its debt-ridden economy – the worst economic crisis in Sri Lanka’s history.
During the meeting, the finance minister stated that India’s response to the pandemic has focused on the twin goals of saving lives and livelihoods.
India has successfully implemented the second largest vaccination program in the world, administering more than 1.85 billion doses of vaccine, she said.
She also addressed the impact of the Russia-Ukraine conflict on the global economy and on India in particular; Economy and Role of the World Bank Group; Single borrower limit and examining the possibility of guarantees from other nations and the Indian G20 Presidency.
Highlighting India’s infrastructure development roadmap, Ms Sitharaman said the country looks forward to continued support from the World Bank to fund investments for the National Infrastructure Pipeline and the Gati Shakti programme.
Last year, Prime Minister Narendra Modi unveiled a national 100 lakhcrore multimodal connectivity master plan aimed at developing infrastructure to reduce logistics costs and boost the economy.
PM Gati Shakti aims to reduce logistics costs, increase handling capacity and reduce turnaround time. The plan aims to bring more power and speed to projects by connecting all concerned departments on one platform.
Attending the 105th plenary session of the Development Committee, the finance minister said India’s economic growth this year has been robust and the highest among any major economy, reflecting India’s resilience and strong recovery.
According to the 2021-22 Economic Survey, the Indian economy is expected to grow by 8-8.5 percent from April 1st and is well positioned to face the future challenges based on widespread vaccination coverage, supply-side reforms and relaxation of regulations.
Agenda items included Digitization & Development, Making Debt Work for Development & Macroeconomic Stability and World Bank Group’s Response to Global Impacts of the War in Ukraine: A Proposed Roadmap, according to a separate statement.
Speaking at this session, the Minister of Finance emphasized that India has voluntarily offered the COVID Vaccine Intelligence Network (CoWIN) platform to all countries and is ready to support other public good platforms as it recognizes the importance of replicating proven and scalable digital platforms acknowledge.
She also drew the attention of the high-level assembly at the meeting to the unprecedented situation in Sri Lanka and hoped for significant relief for the island nation.
