The International Monetary Fund (IMF) announced India as one among the few bright spots in the global economy at its two day meeting of G20 Finance Ministers. The meeting was held to discuss the impact of decline of Chinese economy that slowed down the performance of other large world markets. The meeting also discussed about the various uncertainties in monetary policies faced by different nations.
This remark was made by Christine Lagarde, Managing Director of IMF who came for the meeting of G20 Finance Minister and other Central Bank Governors. Lagarde addressed the gathering that there is large difference between advanced economies and emerging economies. There are many problems that the emerging economies face. She added that among emerging economies if there is any growth, it is only in India.
RBI Governor Raghuram Rajan said at the meeting that India was surrounded by an economic gloom probably due to slowing down of the economy in China. The meeting continued and exceeded its scheduled time till late into the night. It also included many policymakers from South Korea, Australia, China and the US .In the midst of the meeting China assured other G20 member countries that its economy would not collapse and will continue to grow but at a slower pace.
India declared in the meeting that they were against the recent devaluation of major currencies in the global, economy which was followed by currency depreciation mainly in the emerging markets and increased the risk of competitive devaluations. They also emphasized the fact that the currency devaluations at a time when the global demand is low is a major threat against the stability in the global economy.
Rajan also said that the as global economies are witnessing a sustainable growth and there is a need to hike its rates slowly but not in a one go, big bang manner.
