India has been very good at managing its finances but the surge in global energy prices after Russia's military operations in Ukraine is going to have a negative impact on its economy, according to IMF Managing Director Kristalina Georgieva.
The head of the International Monetary Fund (IMF), during a media round table on Thursday on the Russian invasion of Ukraine, told a select group of reporters that the most significant channel of impact on the Indian economy is energy prices.
India is an importer, and the increase in energy prices is going to have a negative impact, Georgieva said. India has been very good in managing its finances, she said, adding that there are some fiscal spaces to be able to respond to the challenge.
Our advice to our members is first and foremost make sure that you protect the most vulnerable populations from the shot up of prices, not only energy but also foot food prices for countries where this is going to be a significant factor, the IMF managing director said.