The International Monetary Fund (IMF) on Wednesday hailed the rollout of India’s cash transfer program and described it as a “logistical marvel” given the sheer size of the country.
Speaking to a Fiscal Monitor press briefing, Paolo Mauro, deputy director of the IMF’s Fiscal Affairs Department, said the global lender had several examples of how companies are rolling out cash transfers and “there are many to learn” from India. The senior IMF official made the comment on the sidelines of the annual meetings of the Boards of Governors of the International Monetary Fund (IMF) and the World Bank Group (WBG).
Mauro said: “From India there is a lot to learn. There is much to learn from some other examples around the world.
“We have examples from almost every continent and every income level. If I look at the case of India, it’s actually quite impressive,” he said.
Highlighting the sheer size of the country, the senior IMF official said it was a “logistical marvel” that these programs aimed at helping low-income people reach literally hundreds of millions of people.
“There are programs that specifically target women. There are programs that target the elderly, farmers,” he said in response to a question about India’s cash transfer programs,” he added.
The IMF official also highlighted the success of many technological innovations in India and the use of the unique identification system, Aadhaar, to make the cash transfer program a success.
Director of the IMF’s Fiscal Affairs Department, Vitor Gaspar, said: “We are working with India in this context as one of the most inspiring examples of the application of technology to solve very complex targeting problems. help to those who need it most.”
This praise for India’s cash transfer program comes as the country continues to maintain its position as the world’s fastest growing major economy.
In its latest report on the outlook for the world economy, the IMF noted: “The outlook for India is for growth of 6.8% in 2022, a decline of 0.6 percentage points since the July forecast. , reflecting a weaker than expected result in the second quarter (April-June) and more moderate external demand.
In its July 2022 report, the IMF pegged India’s GDP growth for 2022 at 7.4%. The IMF’s latest projection for India’s GDP growth is below the 7% growth set by the Reserve Bank of India (RBI) for the fiscal year 2022-23.