India has been very good at the management of its finances, but the rise in global energy prices will have a negative impact on its economy, said Kristalina Georgieva, Director General of the International Monetary Fund.
At a round table of the media Thursday on the Russian invasion of Ukraine and its global impact, Gita Gopinath, which is the first Deputy Director General of the IMF, observed that the war had a challenge to economies around the world. , including India “India relies heavily on energy imports and price increases. Which has implications for the purchasing power of Indian households “If you look at in-title inflation numbers, India’s inflation is close to nearly six percent, which is the top of the inflation band for the India Reserve Bank,” said Ms. Gopinath.
This has implications for monetary policy in the country and it is a challenge in many parts of the world, not just India, she said Ms. Georgieva said, “It is clear that the path of the impact of the Indian economy is clearly.”
India is an importer and the increase in energy prices will have a negative impact, she said, adding: “India has been very good in the management of its finances.” She emphasized that there are tax spaces to face the challenge.
“Our advice to our members are above all what you make sure that you protect the most vulnerable populations of price shooting, not just energy, but also food prices for countries where it’s going to be a factor important “, the management of the director IMF said Target your tax space to those who are in a serious need to be supported. We would also examine the responses of monetary policy, as to how they could be calibrated in an appropriate way to what happens”, added Ms. Georgieva .
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