FM Sitharaman sends message to Beijing on debt distress; morning news roundup
Image Credit: Hindustan Times
Finance Minister Nirmala Sitharaman has sent a veiled message to Beijing on debt distress during a recent virtual meeting of the International Monetary and Financial Committee. Sitharaman highlighted the importance of transparency and accountability in debt sustainability, stressing the need for creditor countries to ensure that debtor nations are not burdened with excessive debt.
The Finance Minister’s comments come amid growing concerns over China’s role in financing infrastructure projects in developing countries, particularly in Asia and Africa. Critics have accused China of engaging in debt trap diplomacy, whereby it provides loans to developing nations with the aim of gaining political influence and control.
In other news, the Indian government has announced plans to set up a new Development Finance Institution (DFI) with an initial capital infusion of Rs 20,000 crore. The DFI will focus on funding infrastructure projects, including those related to water, sanitation, and renewable energy.
Meanwhile, the Reserve Bank of India (RBI) has expressed concern over rising inflation, with the Consumer Price Index (CPI) rising to 5.52% in March, exceeding the central bank’s target range of 2-6%. The RBI has indicated that it may take measures to rein in inflation, including hiking interest rates.
In international news, the United States and Japan have agreed to cooperate on issues related to China’s growing assertiveness in the region, including Taiwan and the South China Sea. The two countries have vowed to uphold a rules-based international order and ensure the peace and stability of the Indo-Pacific region.
RE-reported from the story originally published in Hindustan Times
