Muristek
Washington, March 11
India has been very good at managing its finances but the surge in global energy prices after Russia's military operations in Ukraine is going to have a negative impact on its economy, according to IMF Managing Director Kristalina Georgieva.
She told a select group of reporters that the most significant channel of impact on the Indian economy is energy prices.
India is an importer, and the increase in energy prices is going to have a negative impact, Georgieva said.
Protect vulnerable
Our advice is to protect the most vulnerable populations from price hike, not only energy but also foot food prices for countries where this is going to be a significant factor. —Kristalina Georgieva, MD, IMF
"India has been very good in managing its finances," she said, adding there are some fiscal spaces to be able to respond to the challenge.
"Target your fiscal space to those that are in a grievous need to be supported. We would also be looking into monetary policy responses," she added. —