24 Jan 2020
The International Monetary Fund’s chief suggested that India’s slow growth is only temporary and assured her listeners that it will pick up its pace soon.
“It is still sluggish growth. We want fiscal policies to be more aggressive and we want structural reforms and more dynamism,” Kristalina Georgieva said.
Speaking at the WEF 2020, the IMF chief stated that things got much better worldwide, compared to three months before. The global economy has progressed ever since Washington and Beijing signed the phase one deal to reduce the tension between the two nations.
Georgieva added, “We had a downgrade in one large market India, but we believe that's temporary. We expect momentum to improve further going ahead. There are also some bright spots like Indonesia and Vietnam."
Furthermore, India has made progression in talks with the U.S. over the dispute about Indian steel import duty. The two nations reached an agreement in which Trump’s administration will have to follow the WTO rulings.
The U.S. had imposed high duties on imports of certain Indian steel products. Over the years the U.S. failed to follow the WTO’s ruling.
The latest ruling was in favour of India, noting that the duties imposed were inconsistent with the WTO's Agreement on Subsidies and Countervailing Measures.