Global energy price hike will have negative impact on India’s economy: IMF

International Monetary Fund (IMF) Managing Director Kristalina Georgieva has said that India has managed its economy very well but the rise in global energy prices is going to have a negative impact on its economy.

Talking to the media on Thursday on the topic ‘Russian attack on Ukraine and its global impact’, IMF’s First Deputy Managing Director Gita Gopinath said that due to this war, the economies of the world including India have been challenged.

Gopinath said, “India has a high dependence on energy imports and global energy prices are rising. This is affecting the purchasing power of the Indian people. Inflation in India is around 6 per cent which is a high inflation level according to the Reserve Bank of India.

He said that this will have an impact on India’s monetary policy and it is a challenge not only for India but for many parts of the world.

Georgieva said, “Obviously the biggest impact on the economy is energy prices.”

“India has been good at managing its economy,” Georgieva said.