Published: Sun, April 22, 2018
Business | By Tara Barton

International Monetary Fund says trade tensions hinder growth

The call was made by Union Finance Minister Arun Jaitley in his speech at the International Monetary and Financial Committee that was delivered in his absence on Saturday by Reserve Bank of India (RBI) Governor Urjit Patel.

"There's certainly more to be done but India is certainly seeing benefits from what it has done", he said on the sidelines of the Spring meeting of the International Monetary Fund and the World Bank.

Officials say longer-term global prospects are clouded by sluggish productivity growth and aging populations in wealthy countries. The increase in lending capacity was tied to a package of lending reforms that had been sought by the United States.

It also said that in emerging market and developing economies, fiscal policy is appropriately focused on consolidation, especially in those countries that are still adjusting to lower commodity prices.

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"The intensifying challenges to multilateralism call for unequivocal and forceful voice of the IMF and the WTO (World Trade Organisation) in favour of rule-based worldwide trading system and against protectionism", he added.

The recent steps taken to deal with the accumulated problems in banks are important ones, Lipton said, as he identified digital ID technology and other structural reforms important moves towards inclusive growth and making India an economic powerhouse.

The World Bank's policy committee has approved a $13 billion increase in the bank's lending capacity.

"Fiscal consolidation was paused in fiscal year 2017/18 at the federal level as the economy recovered from disruptions related to demonetization and the rollout of the new national goods and service tax".

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