Among other major announcements, the International Monetary Fund (IMF) has said that India’s top priority should be to protect the most vulnerable people in the country through well-targeted support and also building a solid healthcare system.
In a statement released in the name of the IMF Managing Director, Kristalina Georgieva, said that India should also prioritize supporting and protecting small and medium-sized enterprises so they do not collapse as the country continues to battle the raging pandemic. During the ongoing annual meeting of the IMF and World Bank, Georgieva said India's top priority should be to protect the vulnerable population and improving healthcare.
“What needs to be done? Well, clearly protecting the most vulnerable people, well-targeted support, protecting small and medium-sized enterprises/firms so they do not collapse, and using what the government is now aiming to do, a further injection of support in a way that gives a better chance to turn a corner”, Georgieva was quoted as saying in the news report. “Like everywhere else, until we have a durable exit from the health crisis, we will be faced with difficulties, uncertainty, and uneven recovery”, she added. Georgieva then described the coronavirus pandemic as a humanitarian crisis and said it is a far more serious problem in countries like India where the death toll has crossed over a lakh. “Therefore, focusing on protecting people and on the health of the population remains a priority," she said. Georgieva went on to say that India has taken measures within the capacity of the country, but has not announced any direct fiscal measures yet. Many economists had earlier asked the government to announce direct stimulus measures to revive the economy. “India has taken measures within the capacity of the country, two per cent fiscal measures, plus four per cent in forms of guarantees, not direct fiscal measures”, Georgieva said.