Washington–India has underlined the need to understand the global spillovers of domestic policy actions, especially in the area of trade and financial regulations, the Finance Ministry said on Friday.
“It is important to understand the global spill-overs of domestic policy actions of individual member countries especially on matters related to trade and financial regulation,” Finance Minister Arun Jaitley said while addressing the G-20 Finance Ministers and central bank governors meeting here on Thursday.
Jaitley is on a week long official tour of the US to attend the annual meetings of the International Monetary Fund (IMF) and World Bank.
Among other issues, the meeting here discussed the IMF’s G-20 report on “Strong, Sustainable, and Balanced Growth”, the statement said.
“The report is a useful starting point for studying present challenges facing the global economy and in formulating G-20 response towards addressing these challenges,” the statement cited Jaitley as saying.
“Clear descriptions of the policy scenario in each country, the availability of policy space, key challenges and recommended actions may also be shared,” he said with reference to the report.
“This would allow for improved identification of challenges which are relevant to all members, as well as policies that can be undertaken in a coordinated manner,” he added.
Jaitley on Friday also said the slowdown effect of demonetisation and GST roll-out on the Indian economy has played out and the country’s growth is now headed towards being more balanced and sustainable.
“The Indian economy is poised for strong, sustainable and balanced growth backed by the government’s strong focus on implementing structural reforms.
“There is clear evidence now that slowdown effect of demonetisation and GST has now more or less played out,” Jaitley said at an interactive seminar here on ‘India Opportunity’ organised by the Federation of Indian Chambers of Commerce and Industry (Ficci).
“The implementation of the Goods and Services Tax (GST) from July 1 and its gradual complete transition, follow-up to demonetisation and enacting other structural reforms by the government would take the economy towards higher growth trajectory,” he added.
The Finance Minister spoke on the bold reforms carried out in India which now have created impressive opportunities in infrastructure assets resolution under the Insolvency and Bankruptcy Code (IBC) process and in the financial sector, the Finance Ministry said in a statement.
Further, he stated that foreign direct investment (FDI) flows to India have increased in 2016-17 over 2015-16, indicating improved global confidence in the Indian economy.