STATESMAN NEWS SERVICE
New Delhi, 4 September
The Prime Minister, Dr Manmohan Singh, today called for an “orderly exit” from unconventional monetary policies being pursued by the developed world.
Dr Singh, who left for St Petersburg today to attend the G20 Summit, in a statement issued before his departure, said: “I will emphasise in St Petersburg the need for an orderly exit from the unconventional monetary policies being pursued by the developed world for the last few years so as to avoid damaging the growth prospects of the developing world.”
The BRICS block of countries which comprises Brazil, India, Russia, China and South Africa are all facing a slowing economy. The Indian rupee has lost one-fifth of its value against the US dollar this year following major capital outflows triggered mainly due to the moves by the Fed Reserve. India is also suffering a decade-low growth and GDP rose just 4.4 per cent in the first quarter of this fiscal.
Dr Singh said he will once again emphasise at the summit that the G20 should ensure primacy of the development dimension in his deliberation, focus on job creation, promote investment in infrastructure as the means of stimulating global growth and create potential in developing countries to sustain higher growth in the medium term.
The Prime Minister said it is also important that G20 encourages and promotes policy coordination among major economies in a manner that provides for a broad-based and sustained global economic recovery and growth. India has been an active participant in this endeavour as co-chair of the Working Group on the “Framework for Strong, Sustainable and Balanced Growth”.
“There is also an urgent need to reform institutions of global political and economic governance. I am happy that the Russian Presidency has paid special attention to these issues in the G20 agenda this year, particularly through a new financing for investment initiative,” the PM said.
The Summit comes at a time when India has introduced several reform measures and taken steps to strengthen macro-economic stability.