Guwahati: The International Monetary Fund (IMF) praised the implementation of the cash transfer programme in India on Wednesday, calling it a “logistical wonder” given the size of the nation.
IMF Deputy Director of Fiscal Affairs Paolo Mauro said the international lender has multiple instances of how corporations use cash transfers and “there is a lot to learn” from India in his remarks at a Fiscal Monitor Press Briefing.
The top IMF official made this comment on the sidelines of annual meetings of the Boards of Governors of the International Monetary Fund (IMF) and the World Bank Group (WBG).
Mauro stated, “There is a lot to learn from India. From various other examples around the world, there is much to be learned.”
“We have instances from essentially every region and economic bracket. In fact, it is fairly impressive if I consider the situation of India,” he said.
The top IMF official emphasised the scale of the nation by stating that it is a “logistical marvel” how these initiatives, which aim to assist those who are at low income levels, are able to reach literally hundreds of millions of people.
There are initiatives that concentrate on women in particular. When asked about India’s cash transfer programmes, he responded, “There are programmes that target the elderly and farmers.
The IMF representative also cited the deployment of the Aadhaar unique identification system and the widespread adoption of technology developments in India as contributing factors to the cash transfer program’s success.
“We are partnering with India in that context as one of the most exciting examples of the deployment of technology to tackle very hard issues of directing help to the people who need it most,” said Vitor Gaspar, director of the IMF’s Fiscal Affairs Department.
This acclaim for India’s cash transfer programme comes as the nation’s economy continues to grow at the quickest rate among developed nations.
In its latest World Economic Outlook report, the IMF noted, “The outlook for India is for growth of 6.8 per cent in 2022, a 0.6 percentage point downgrade since the July forecast, reflecting a weaker-than-expected outturn in the second quarter (April-June) and more subdued external demand.”
The IMF estimated India’s GDP growth for 2022 to be 7.4% in its July 2022 report. The Reserve Bank of India (RBI) has estimated a growth of 7% for the fiscal year 2022–2023, which is lower than the most recent IMF projection for India’s GDP growth.