Things went off the track after the IMF insisted on inclusion of some new conditions in the programme, which appeared unreasonable.
Renewed tensions between the two economic superpowers were hanging over the negotiations that were set to resume later May 9 and IMF spokesman Gerry Rice renewed the call for a 'speedy resolution'.
The countries have been locked in talks to resolve tensions that have seen both of them impose tariffs on goods worth $360 billion.
The IMF forecasts the economy in Iran, the second largest in the region behind Saudi Arabia, will shrink by 6.0 percent this year after contracting by 3.9 percent in 2018.
The World Bank estimates the affected countries will need over $2 billion to recover.
The gravity of economic problems shows that the next government will find it very difficult to rally the usual macroeconomic responses to support growth.
The tailwind to increasing investment rates from declining capital goods prices has petered out
He said the International Monetary Fund package would ease off pressure from the country's dwindling foreign reserves.
Sakshi Batra does a 3 Point Analysis of the observations of the IMF meeting and what does that imply about global growth.
The global expansion, now seen at its most sluggish pace in three years, is likely to firm up next year, but central banks and fiscal authorities have limited policy options to drive a rebound, officials said in the joint communique of the International Monetary Fund's steering committee.
Global finance leaders gathered from the spring meetings of the International Monetary Fund and the World Bank agree that the global economy has lost momentum this year.
Gopinath told Reuters in an interview that such a conflict would affect exports from many more countries and impose retaliatory duties on U.S. goods from numerous trading partners.
This is Jaitley's first official overseas trip since his kidney transplant in mid-May last year.
"When one looks at some of the populist proposals announced by political parties during this election season, the important thing is to look at the benefits but also look at the costs and to look at the details," Paolo Mauro, Deputy Director, the International Monetary Fund's Fiscal Affairs Department, told reporters at a news conference here on Wednesday.
Anna Ilyina, Division Chief of IMF Monetary and Capital Markets Department, said Wednesday that bolstering the level of capitalisation was one of the recommendations of the Financial Sector Assessment Programme (FSAP) for India.
The country's leadership has been in question since late January when national assembly leader Juan Guaido challenged embattled President Nicolas Maduro as the country's acute economic crisis worsened.
Vaibhavi Khanwalkar gets in a conversation with Moneycontrol's Deputy Exective Editor, Ravi Krishnan to find out what it means for the Indian economy.
Lower oil prices will be a windfall for India
According to the Fiscal Monitor report, studies on public procurement show that the design of procedures can have a significant impact on the prices and quality of products.
In 2018, India's growth rate was 7.1 percent, as against China's 6.6 percent. In 2019, the International Monetary Fund (IMF) projected a growth rate of 6.3 percent for China and 6.1 percent in 2020, according to the latest World Economic Outlook projections released ahead of the annual spring meetings of the International Monetary Fund and the World Bank.
Fuel prices have increased steadily over the past three years.
Consumer price inflation rose in March to its highest since November 2013. Energy costs in particular have risen sharply, hit by a series of a devaluations.
In a speech ahead of next week's spring meetings in Washington with the World Bank, IMF chief Christine Lagarde said the world economy was vulnerable to shocks from Brexit, high debt levels and trade tensions, as well as unease on financial markets.
Zhang Tao, deputy managing director at the IMF, made the comments at the Boao Forum.