IMF Managing Director Kristalina Georgieva said on Thursday that though India has worked on the fundamentals of its economy, there are problems, including long-term drivers of growth that need to be addressed.
Mnuchin's remarks ran counter to urgent warnings this week from the International Monetary Fund, which said the US-China trade war would shave 0.8 percent from the world economy next year alone and was eating into business investment in the United States.
Asian nations face heightening risks to their economic outlooks as the U.S.
The move by the IMF will "preserve its role at the centre of the global financial safety net", Lesetja Kganyago, International Monetary and Financial Committee Chairman and Reserve Bank of South Africa Governor, said in a statement. -China trade agreement announced last week should lessen the damage slightly, but solid global growth would not return until the two countries resolved their differences.
She said she hoped this week's talks would focus on ways to ease trade tensions and begin the groundwork to update the rules of world trade.
Currently, the global lender has 1 trillion USA dollars in total lending resources, made up of quotas, its main source of financing and based broadly on each member's relative position in the world economy, the New Arrangements to Borrow, a multilateral borrowing mechanism that provides additional lending resources, and the Bilateral Borrowing Agreements, a further boost to IMF's lending capacity after the 2008 financial crisis. That would be the weakest showing since a negative 0.1% in 2009, in the wake of the worst financial crisis since the 1930s.
"The intensification in trade tensions between the USA and China could further weigh on confidence and financial markets, thereby weakening trade, investment and growth", he said.
The administration of US President Donald Trump has repeatedly attacked the Geneva-based WTO, saying that it is biased against the US.
"Even if growth picks up in 2020", Georgieva said in her speech last week, "the current rifts could lead to changes that last a generation", such as "broken supply chains" and "siloed trade sectors". She noted that global commerce has been transformed in recent years by advances in technology, and those advances need to be acknowledged in new trade rules.
"There is an urgency to what we're doing because of the challenges facing development", Malpass said.
On the global front, she said with the right mix of policies and structural reforms, countries could unleash economic growth.
Although Washington did postpone plans to increase tariffs on some $250 billion of Chinese imports - which had been due to take effect earlier this week - it is still up in the air whether another U.S. tariff hike due on December 15 will be implemented.
Treasury Secretary Steven Mnuchin told reporters Wednesday that the US and Chinese negotiators were working to hammer out details on this "phase one" agreement. He said the European Union was ready to negotiate a settlement to avoid the tariffs but so far the United States has rejected those efforts.
Mnuchin said the administration has made no decision yet on whether it will postpone 15% tariffs on $160 billion in Chinese goods still due to take effect December 15.
It is expected that Trump and Chinese President Xi Jinping will meet at that summit to sign the initial phase of the deal, if it is finalized by that time.