New Delhi: As the global uncertainty on the economy takes a toll on the financial situation of many countries, Union Finance Minister Nirmala Sitharaman on Saturday said that the ongoing trade wars will ultimately impact the flow of capital, goods and services.
Sitharaman, who is currently in Washington for the Annual Meetings of the IMF and World Bank, spoke at the 40th International Monetary and Financial Committee (IMFC).
Alerting the global financial organisations, she said, “We need not wait for the slowdown to become a crisis.”
Given the current economic conditions around the world, Sitharaman stated, the increased trade integration, geopolitical uncertainties, and high accumulated debt levels necessitate strong global coordination.
Sitharaman said that a ‘concerted action’ to mitigate the disruption on account of synchronous slowdown and to invoke the spirit of multilateralism for global growth.
Notably, the IMFC held three sessions, attended by global economic leaders. The sessions were focused on worldwide developments and prospects, as well as the upcoming risks to global economy and stability. The discussions centred upon the World Economic Outlook which released on October 15.
The Indian Finance Minister also led the Indian delegation at G20 finance ministers and central bank governors meeting in which the deliberations centred on international taxation and stable coins.
Sitharaman said a unified approach to the nexus and profit allocation challenges is a promising one that merits serious attention. “A solution that is simple to implement, simple to administer and simple to comply with is needed,” she added.
Finance Minister Sitharaman also held several bilateral talks on the sidelines of the World Bank and IMF meetings with First Deputy Prime Minister and Finance Minister of Russia Anton Siluanov, Kyrgyz Republic Finance Minister Baktygul Jeenbaeva, Finance Minister of Switzerland Ulei Maurer, Australian Treasurer Josh Frydenberg and Finance Minister of Maldives Ibrahim Ameer.
With inputs from agencies