India witnessing V-shaped recovery, govt steps to spur economic growth: FM

Finance Minister Nirmala Sitharaman on Thursday said V-shaped pattern of recovery is being seen in several high-frequency indicators, driven by various measures taken by the government to revive economic growth, hit hard by the outbreak of Covid-19 pandemic.

In her address to the plenary meeting of the International Monetary and Financial Committee (IMFC), the ministerial-level committee of the International Monetary Fund (IMF), through video conference, she said several low-income and developing countries are confronted with the challenge to protect and ensure livelihood for millions slipping below the poverty line.

Sitharaman mentioned that recovery and rehabilitation efforts in these countries must not be allowed to be undermined in any manner, a Finance Ministry statement said.

She outlined the measures under the 'Aatmanirbhar Bharat' package to foster a quick and more robust economic recovery in India.

"She mentioned that the V-shaped pattern of recovery is being seen in several high-frequency indicators, including manufacturing PMI that reached the highest level in last eight years in the month of September 2020, presenting a strong recovery prospect for the manufacturing sector," it said.

To stimulate consumer spending, she said measures worth USD 10 billion have been announced recently.

Earlier this week, the government announced a Rs 73,000 crore package, including advance payment of a part of wages to central government employees and cash in lieu of leave travel concession (LTC), to stimulate consumer demand and investment in the economy damaged by the coronavirus pandemic.

The minister also complimented IMF's Managing Director Kristalina Georgieva and the IMF for providing wise counsel to the economies across the globe and felt that IMF's assertion that a premature withdrawal of policy support could trigger liquidity shortfalls and insolvencies is relevant, the statement said.

The discussions at the meeting were based on IMF Managing Director's Global Policy Agenda titled "Catalyzing a Resilient Recovery", it added.

The members of IMFC updated the committee on the actions and measures taken by member countries to combat Covid-19 and its adverse impacts, it said.

The IMFC meets twice a year, once during the fund-bank spring meetings in April, and again during the annual meetings in October. It discusses matters of common concern affecting the global economy and advises the IMF on the direction of its work.

This year, due to the Covid-19 outbreak, both the spring and annual meetings took place through video conference.