US stimulus exit must not harm others: PM
6 Sept 2013 4:05 AM IST
Amid imminent phasing out of the fiscal stimulus by the US Federal Reserve, Prime Minister Manmohan Singh on Wednesday called for an 'orderly exit' from the ‘unconventional monetary policies being pursued by the developed world for the last few years to avoid damaging growth prospects of the developing world’.
In a statement before leaving for the 8th G-20 Summit in the Russian city of St Petersburg, he underscored the importance of the grouping of industrialised and major developing economies to promote policy coordination among major economies in a manner that provides for a broad-based and sustained global economic recovery and growth.
The Prime Minister’s statement came in the backdrop of splits between emerging markets and the USA over its winding down of the stimulus and the slowing growth of India and the other four BRICS countries. Singh said though there are encouraging signs of growth in industrialised countries, there is also a slowdown in emerging economies which are facing the adverse impact of significant capital outflows.
Brazil, India, Russia, China and South Africa — grouped in the informal BRICS bloc seen as an alternative economic powerhouse — all go to the meeting experiencing slowing growth, embattled currencies and huge capital outflows. Our own rupee has lost a fifth of its value against the dollar this year following major capital outflows, triggered mainly due to the moves by the US Federal Reserve.
Singh said that he will once again emphasise at the Summit that the G2-0 should ensure primacy of the development dimension, 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. He said it is important that G-20 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 G-20 agenda this year, particularly through a new financing for investment initiatives,' he said.
In a statement before leaving for the 8th G-20 Summit in the Russian city of St Petersburg, he underscored the importance of the grouping of industrialised and major developing economies to promote policy coordination among major economies in a manner that provides for a broad-based and sustained global economic recovery and growth.
The Prime Minister’s statement came in the backdrop of splits between emerging markets and the USA over its winding down of the stimulus and the slowing growth of India and the other four BRICS countries. Singh said though there are encouraging signs of growth in industrialised countries, there is also a slowdown in emerging economies which are facing the adverse impact of significant capital outflows.
Brazil, India, Russia, China and South Africa — grouped in the informal BRICS bloc seen as an alternative economic powerhouse — all go to the meeting experiencing slowing growth, embattled currencies and huge capital outflows. Our own rupee has lost a fifth of its value against the dollar this year following major capital outflows, triggered mainly due to the moves by the US Federal Reserve.
Singh said that he will once again emphasise at the Summit that the G2-0 should ensure primacy of the development dimension, 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. He said it is important that G-20 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 G-20 agenda this year, particularly through a new financing for investment initiatives,' he said.
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