Union Minister of Finance & Corporate Affairs Smt. Nirmala Sitharaman attended the Plenary Meeting of the International Monetary and Financial Committee (IMFC), theMinisterial-level committee of the International Monetary Fund (IMF)through video-conference.

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

Smt. Sitharaman, in her intervention at the meeting, briefly outlined the measures under the AtmaNirbhar 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. To stimulate consumer spending, measures worth $10 billion have been announced recently.

The Finance Minister also complimented IMF’s Managing Director Ms. 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.

Several low-income and developing countries are confronted with the challenge to protect and ensure livelihood for millions slipping below the poverty line. Smt. Sitharaman mentioned that recovery and rehabilitation efforts in these countries must not be allowed to be undermined in any manner.

The IMFC meets twice a year, once during the Fund-Bank Spring Meetings in April, and again during the Annual Meetings in October. The Committee 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 the Annual meetings took place through video-conference.

Policy support: sustained recovery measures urged to avert liquidity shortfalls and protect vulnerable livelihoods during pandemic recovery. The IMFC met virtually to consider the IMF Managing Director's Global Policy Agenda; the minister outlined India's AtmaNirbhar Bharat Package as a tool to speed recovery, citing a V-shaped rebound in key indicators and stimulus to support consumer demand and manufacturing. She supported the IMF's caution that withdrawing policy support too soon may cause liquidity shortfalls and insolvencies, and urged that recovery efforts must protect livelihoods in low-income and developing countries. The IMFC's advisory, twice-yearly ministerial role was noted.