FM Sitharaman says V-shaped recovery seen in high-frequency indicators at IMF meet

Finance Minister Nirmala Sitharaman said a V-shaped pattern of recovery in ecomy is being seen in several high-frequency indicators and expressed confidence in government's stimulus measures to support a sputtering ecomy amid Coronavirus crisis.

Speaking at virtual plenary meeting of International Monetary and Financial Committee (IMFC), ministerial-level committee of IMF, Sitharaman briefly outlined measures under 'AtmaNirbhar Bharat' pack to foster a quick and more robust ecomic recovery in India.

India is heed to post its first annual GDP contraction in over four deces as pandemic-triggered health crisis and months-long stringent lockdown punctured wheels of growth.

Citing improved factory activity as PMI reached highest level in last eight years in September, Sitharaman presented a strong recovery prospect for manufacturing sector.  IHS Markit India Manufacturing PMI surged to 56.8 in September, highest since January 2012, from 52.0 in August. 50 mark separates growth from contraction.

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discussions at meeting were based on IMF Managing Director’s Global Policy nda titled “Catalyzing a Resilient Recovery”. members of IMFC updated committee on actions and measures taken by member countries to combat COVID-19 and its verse impacts, Finance Ministry said.

Sitharaman also complimented IMF’s Managing Directo Kristalina Georgieva and IMF for providing wise counsel to ecomies across globe and felt that IMF’s assertion that a premature withdrawal of policy support could trigger liquidity shortfalls and insolvencies, is relevant.

Several low-income and developing countries are confronted with challenge to protect and ensure livelihood for millions slipping below poverty line. Sitharaman mentioned that recovery and rehabilitation efforts in se countries must t be allowed to be undermined in any manner.

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