Global growth hit by prolonged inflation, supply chain disruptions: FM

Global growth momentum is dampened by prolonged inflation, supply chain disruption, volatility in energy markets and investor uncertainty, said Finance Minister Nirmala Sitharaman while taking part in the G20 Finance Ministers and Central Bank Governors meeting in Washington DC.

Under the Indonesia presidency, the Union Finance Minister at G20 said that it is well placed to catalyse international policy coordination to deal with macroeconomic consequences.

"FM Smt. @nsitharaman spoke at the #G20 Finance Ministers & Central Bank Governors #FMCBG meeting under #G20Indonesia presidency in Washington D.C., today. Meeting agenda included #global economic outlook & risk, international financial architecture & #globalhealth," the finance ministry said in a Tweet on Thursday.

"FM Smt. @nsitharaman noted that global growth momentum is dampened by prolonged #inflation, #supplychain disruption, volatility in #energymarkets and investor uncertainty," the ministry said further.

"Finance Minister Smt. @nsitharaman said #G20 is well placed to catalyse international #policy co-ordination to deal with #macroeconomic consequences and called for #proactive #collective efforts towards protecting economies," it added.

Yesterday, Sitharaman met Mary Schapiro, vice chairman of the Climate Finance Leadership Initiative (CFLI) and spoke about her vision of developing GIFT City, India's First Operational Smart City.

According to the Indian finance ministry, Schapiro who is also the former chairman of the US Securities and Exchange Commission concurred that it is an opportune time for India to play a leadership role in shaping global climate finance trends.

Earlier in the day, Sitharaman attended a panel discussion at the Atlantic Council, a US-based think tank.

She said that India is one of the six countries to have fulfilled most of the commitments made at the Paris Climate Summit in 2015 and remains committed to fulfilling its renewable energy targets.

Sitharaman is in Washington on an official visit to attend the Spring Meetings at the World Bank, the G20 Finance Ministers meeting and the Central Bank Governor Meeting (FMCBG).

The Union Finance Minister also talked about the Indian economy, the challenges faced during the COVID-19 pandemic. She spoke about welfare schemes of the government and India's recovery plan from the economic impact of the COVID-19 pandemic during the almost an hour-long session.

Sitharaman also met South African Finance Minister Enoch Godongwana in Washington DC and discussed enhancing bilateral ties between the two countries.

In the series of tweets, Finance Ministry further informed that the Union Finance Minister acknowledged South Africa's revenue collections for the fiscal year 2021-2022.

Sitharaman had highlighted India's performance in the digital world and the government's efforts to build the digital infrastructure framework over the last decade, stressing the increase of the digital adoption rate in India during the COVID-19 pandemic.

The IMF Managing Director Kristalina Georgiev lauded India's well-targeted policy mix that has helped the Indian economy remain resilient.

Notably, once the meetings conclude in Washington, Sitharaman will head to San Francisco on April 24, where she will engage with business leaders and will also interact with the faculty and students at Stanford University. She will depart for India on April 27.