International Monetary Fund (IMF) chief Gita Gopinath on Wednesday appreciated India's efforts in containing the coronavirus virus, saying that she expects more in terms of scale in the near future.
"The Indian government has prioritised things very well. Health is the first priority, containment measures have been put in place," she told CNBC-TV18 in an exclusive interview. "The Indian government has also provided direct support to weaker sections. I commend the RBI (Reserve Bank of India) for putting liquidity measures in place."
Gopinath also expressed concerns over countries slipping into deglobalisation in the process of recovery from the global pandemic caused by the novel coronavirus outbreak. Nations were already in the process of becoming protectionist when the COVID-19 scare broke out, she said.
Gopinath said the uncertainty of how long the pandemic will last is something the world has not seen before, as a result of which historical data cannot be used to make any predictions at this time.
She pointed out that the size of the shock itself is what is so unique about this current crisis, adding that a strong fiscal and monetary response is required to tackle it.
There is a real risk that as and when the world starts to come out of this pandemic, countries may become more inward-looking.
"We saw countries become more protectionist in the run-up to this crisis," she said, adding nations should not go backwards from globalisation. This, especially since we are already looking at a weak recovery and de-globalisation, could hurt even more, she said.
With lockdowns being implemented around the world, many companies do not have parts they need to produce goods, which is already resulting in supply chain disruptions, she said.
Gopinath added that the world could see a 6% contraction if the ongoing pandemic is not contained during the second half of this year.
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