International Monetary Fund (IMF) Managing Director Christine Lagarde, during her address at the IMF's "Advancing Asia" event in Delhi Saturday, hailed "important reforms" implemented by the Narendra Modi government and called Asian nations to bring in growth-friendly policies. Modi, however, stated the IMF quotas did not reflect realities of the global economy.
A week after the IMF warned of another downgrade to the global growth outlook, Lagarde called for reforms in Asian economies.
"What should be Asia's response?...It is safe to say that structural reforms are key — to boost competitiveness, growth, and jobs," she said, according to Reuters.
Lagarde hailed the Modi government's "Make in India" and "Digital India" campaigns.
"India's star shines bright with the promise of more reforms in coming days. Aadhar is a ground-breaking way to deliver targeted subsidies," Lagarde added, a day after the Lok Sabha passed the Aadhar Bill.
PM Modi called for global institution to reflect global changes.
"Reform of global institutions has to be an on-going process. It must reflect changes in the global economy, and the rising share of emerging economies," Prime Minister Modi said, according to a Twitter post by the Prime Minister's Office. "Even now IMF quotas do not reflect the global economic realities," he said, but added he was "happy the IMF has decided to finalise the next round of quota changes by October 2017."
Finance Minister Arun Jaitley had addressed the "Advancing Asia" conference Friday, during which he said India was committed to reforms.
"Except for a few steps that face political obstacles... India has a great track record. Since 1991, since we initiated the reforms process, we have never abandoned a reform because it could not get passed," he said, according to Mint.