India’s Covid-hit economy recovering, prioritise implementing support programs, says IMF

IMF says fiscal, monetary and financial sector measures gave much-needed support to the severely affected economy, including businesses, agriculture, and households.

Signage displayed outside the IMF | Alex Wroblewski | Bloomberg

Washington: India’s economy, severely affected by the coronavirus pandemic, is gradually recovering, the International Monetary Fund said on Thursday.

India’s economy recovered faster than expected in the September quarter as a pick-up in manufacturing helped GDP clock a lower contraction of 7.5 per cent and held out hopes for further improvement on better consumer demand.

“India has indeed been severely affected by the pandemic but is gradually recovering,” IMF chief spokesperson Gerry Rice told reporters.

Fiscal, monetary, and financial sector measures announced to date provided much-needed support to the economy, including businesses, agriculture, and vulnerable households, Rice said in response to a question on the IMF’s assessment of India’s economy during the coronavirus pandemic.

“To further support growth, we believe the Indian authorities should prioritize swift implementation of the existing support programs and may need to consider expanding their scope, as warranted,” Rice said.

In her address to the International Monetary and Financial Committee (IMFC), the ministerial-level committee of the IMF, through video conference, Union Finance Minister Nirmala Sitharaman had said that a V-shaped pattern of recovery is being seen in several high-level indicators.