The world’s economic recovery is slow and uneven, requiring cooperation, says Nirmala Sitharaman.
Finance Minister Nirmala Sitharaman, speaking in New Delhi, pointed out that the global economic recovery is progressing slowly and unevenly. She also expressed concern that the medium-term growth outlook has deteriorated. Sitharaman emphasized the need for coordinated efforts, both at the international and national levels, to facilitate a more rapid and robust recovery.
During a seminar focused on achieving Strong, Sustainable, Balanced, and Inclusive Growth in the Indian capital, Sitharaman highlighted the significance of adopting well-planned structural policies, as emphasized in the New Delhi Declaration by G20 leaders in September.
Nirmala Sitharaman emphasized a substantial shift in India’s economic situation. She highlighted that in 2013, Morgan Stanley had classified India among the world’s five vulnerable economies. However, she stressed that today, Morgan Stanley has improved India’s rating, positioning it in a more favorable position. She pointed out that in just nine years, the Indian economy has made significant progress and achieved substantial economic growth, largely due to government policies, even amidst the challenges posed by the COVID-19 pandemic.
The International Monetary Fund (IMF) projects a global growth rate of 3% for 2023 and 2024, which is lower than the pre-pandemic two-decade average of 3.8%. Despite this, India is expected to maintain its position as the world’s fastest-growing economy, with a growth rate of 6.3% in the current fiscal year and the next, according to the IMF. G20 leaders are set to convene in a virtual meeting on November 22, which marks the final meeting during India’s presidency. Following that, Brazil will assume the presidency from December.
Sitharaman stated that India’s G20 presidency has given clear policy guidance for addressing the concerns of the global population, particularly those whose voices are often overlooked in international forums. She acknowledged that there is still work to be done. Throughout its G20 leadership, India has put significant effort into exploring how technology can be harnessed for the benefit of all, with a particular focus on digital public infrastructures, Sitharaman explained.
She voiced apprehension about the deceleration in global economic growth. She noted that despite this global trend, India maintains its position as the fastest-growing major economy, achieving a growth rate of 7.8 percent during the first quarter of the fiscal year 2023-24.
The New Delhi Declaration has placed significant emphasis on trade, the future of work, and financial inclusion, as these factors are deemed crucial for driving global economic growth, according to the minister.
