Indian Finance Minister Nirmala Sitharaman addressed concerns about the Israel-Hamas conflict affecting fuel prices during a G20 briefing in Morocco. She acknowledged that the Middle East crisis had reignited concerns about fuel prices in many countries, with concerns about peace, food security, inflation, and the fragmentation of supply chains being the primary worries.
Sitharaman emphasized that emerging markets are significant drivers of global growth, and these economies are witnessing significant growth. She highlighted that growth momentum in emerging markets would have a positive impact and spread as a positive contagion to other regions.
Regarding investments, Sitharaman stated that investment flows are not solely influenced by high interest rates, which have been high globally for some time. She stressed that the sustained growth momentum seen in emerging markets would continue to attract investment flows.
The Finance Minister also expressed concerns about the fragmentation of global supply chains. This fragmentation has been a major concern as it disrupts the efficient flow of goods and materials across borders. Such disruptions can have far-reaching impacts on various industries and economies.
Sitharaman further discussed the International Monetary Fund’s (IMF) role in addressing bottlenecks in the debt restructuring process and promoting cooperation on debt issues. She emphasized the importance of the IMF remaining well-capitalized through quota-based resources to maintain its central role in the global financial safety net.
This address was part of Sitharaman’s participation in the IMF-World Bank Annual Meetings 2023 in Marrakech, Morocco. During the meetings, she engaged in discussions with US Treasury Secretary Janet Yellen regarding the policy priorities of the IMF and its support to member countries.
The Finance Minister highlighted the importance of multilateralism in addressing global challenges and called for the IMF’s primary focus to be on macroeconomic surveillance and policy guidance. She also underscored the significance of the IMF remaining well-capitalized to fulfill its role in the global financial safety net.
Nirmala Sitharaman’s address focused on the concerns related to fuel prices amid the Israel-Hamas conflict and emphasized the role of emerging markets in global growth. She also discussed the IMF’s role in addressing debt issues and the importance of maintaining the IMF’s financial strength to support member countries.