Article:
The Union Minister of Finance & Corporate Affairs has recently taken part in the International Monetary and Financial Committee (IMFC) plenary meeting through video-conferencing.
Global Policy Agenda: Exceptional Times – Exceptional Action
The agenda for this recent meeting centered around the theme “Exceptional Times – Exceptional Action”. During the meeting, members updated the IMFC on the measures and actions that their respective countries have been implementing to combat the Covid-19 pandemic. The discussion also included acknowledgment of the IMF’s crisis-response package, designed to address global liquidity and meet the financing needs of member countries.
India emphasized the vital role the IMF plays in maintaining the stability of the international monetary and financial system, urging it to sustain this crucial function within the global financial architecture.
India’s Response to the Health Crisis
The noteworthy measures taken by India to address the health crisis and its impacts were highlighted during the meeting. These measures included:
India Covid-19 Emergency Response and Health System Preparedness Package
The Government of India has allocated $2 Billion (₹15,000 crore) for strengthening the healthcare system as a part of the package.
Pradhan Mantri Garib Kalyan Yojana
This scheme worth $23 Billion (₹1.70 lakh crore) was announced to alleviate the hardship of the economically disadvantaged and vulnerable.
Additional Measures Implemented by India
The government provided relief to firms concerning statutory and regulatory compliance matters. The Reserve Bank of India (RBI) eased monetary policy and declared a three-month moratorium on loan instalments. India also created a Covid-19 Emergency Fund for the SAARC region.
About the International Monetary and Financial Committee
The IMFC is a ministerial-level committee of the International Monetary Fund (IMF). It meets bi-annually, during the Fund-Bank Annual Meetings in October and the Spring Meetings in April. Due to the Covid-19 outbreak, this year’s meeting took place through video-conference.
The committee is tasked with overseeing the management of the international monetary and financial system and advising the IMF on matters affecting the global economy. The IMFC has 24 members, drawn from a pool of 189 governors, representing all member countries. India currently holds one of these memberships. The committee operates on consensus, including the selection of its chairman.