Global News Post: G-20

India: PM Addresses the Plenary Session of G-20 Summit

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<tr><td class="tr-caption" style="text-align: center;"><div align="center" class="MsoNoSpacing"><i><span lang="EN-US" style="font-family: 'Trebuchet MS', sans-serif; font-size: 9pt;">The Prime Minister, Dr. Manmohan Singh at the<o:p></o:p></span></i></div><div align="center" class="MsoNoSpacing"><i><span lang="EN-US" style="font-family: 'Trebuchet MS', sans-serif; font-size: 9pt;">first Plenary Session of the G-20 Summit, at<o:p></o:p></span></i></div><div align="center" class="MsoNoSpacing"><i><span lang="EN-US" style="font-family: 'Trebuchet MS', sans-serif; font-size: 9pt;">Los Cabos, Mexico on June 18, 2012. Photo © PIB<o:p></o:p></span></i></div></td></tr>
</tbody></table><span style="font-family: 'Trebuchet MS', sans-serif; font-size: 12pt; line-height: 115%; text-align: justify;">NEW DELHI (PIB): The Prime Minister, Dr. Manmohan Singh addressed the Plenary Session of G-20 Summit in Los Cabos, Maxico today.</span><br />
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</div><div class="MsoNormal" style="text-align: justify;"><span lang="EN-US" style="font-family: 'Trebuchet MS', sans-serif; font-size: 12pt; line-height: 115%;">While addressing, the Indian Prime Minister said that the global economic situation is deeply worrying. The economic recovery is faltering and even the fast growing emerging markets are slowing down. This calls for policy action on several fronts. Of greatest concern at present is the uncertainty affecting the Eurozone. The sovereign debt crisis and the banking crisis now on the horizon have grave implications for the health of the entire global economy, Dr. Singh said. <o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span lang="EN-US" style="font-family: 'Trebuchet MS', sans-serif; font-size: 12pt; line-height: 115%;">A new government in Greece is about to take office. We wish them well and are encouraged by the early statements of intent, he added. <o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span lang="EN-US" style="font-family: 'Trebuchet MS', sans-serif; font-size: 12pt; line-height: 115%;">However, the risks of contagion in Europe remain because they reflect weaknesses in the banking sector arising from excessive sovereign debt and low growth prospects. A crisis in the European banking system can choke trade finance quite quickly, and end up choking economic growth not just in the Eurozone but in the world in general. <o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span lang="EN-US" style="font-family: 'Trebuchet MS', sans-serif; font-size: 12pt; line-height: 115%;">This Summit needs to send a strong signal to the markets that the Eurozone countries will make every effort to protect the banking systems and the global community will back a credible Eurozone effort and response. <o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span lang="EN-US" style="font-family: 'Trebuchet MS', sans-serif; font-size: 12pt; line-height: 115%;">The Indian Prime Minister, mentioning the problems said that, there is concern that the firewall available may not be adequate to deal with contagion. The resources currently expected to be mobilized by Europe and the IMF are less than was estimated a year ago, and the crisis is actually more serious. <o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span lang="EN-US" style="font-family: 'Trebuchet MS', sans-serif; font-size: 12pt; line-height: 115%;">Part of the solution lies in providing liquidity to cope with loss of market confidence. But liquidity does not help when solvency is in question. To address this problem, liquidity must be provided in parallel with effective adjustment programmes that ensure an early return to debt sustainability. The adjustment programme adopted should lead to an acceleration of growth, so that countries can grow out of the debt trap. <o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span lang="EN-US" style="font-family: 'Trebuchet MS', sans-serif; font-size: 12pt; line-height: 115%;">Dr. Singh said that, this brings me to the contentious issue of the relationship between austerity and growth. It can be argued that austerity now will lay the basis for sustained growth later. But there is also an alternative view that with growth impulses as seriously weakened as they are today, synchronized austerity across many countries may not be the right medicine. <o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span lang="EN-US" style="font-family: 'Trebuchet MS', sans-serif; font-size: 12pt; line-height: 115%;">Financial markets normally favour austerity, but even they are beginning to recognize that austerity with no growth will not produce a return to a sustainable debt position. <o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span lang="EN-US" style="font-family: 'Trebuchet MS', sans-serif; font-size: 12pt; line-height: 115%;">I am not suggesting that fiscal prudence is not important. I am only saying that given the large adjustment needs, not all of it can be front-loaded everywhere. This is especially relevant within a currency area. Austerity in the debt-ridden members of the Eurozone can work only if surplus members are willing to expand to offset contraction elsewhere in the currency area. <o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span lang="EN-US" style="font-family: 'Trebuchet MS', sans-serif; font-size: 12pt; line-height: 115%;">The International Monetary Fund has a critical supportive role to play in stabilizing the Eurozone. All members must help the Fund to play this role. I am happy to announce that India has decided to contribute $ 10 billion to the IMF’s additional firewall of $ 430 billion. <o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span lang="EN-US" style="font-family: 'Trebuchet MS', sans-serif; font-size: 12pt; line-height: 115%;">While many rich countries face difficulties, the less developed and developing countries are also facing serious problems because of the negative impact of the global crisis. Infrastructure investment in developing countries assumes special importance in this context. It lays the foundation for rapid growth in the longer term, while providing an immediate stimulus for their economies and also for the global economy, by providing a robust source of demand. <o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span lang="EN-US" style="font-family: 'Trebuchet MS', sans-serif; font-size: 12pt; line-height: 115%;">An expansion of investment in infrastructure in developing countries is only possible if they can get access to long term capital to finance such investment. This is difficult at a time when capital flows are disrupted. The Multilateral Development Banks can play a major role in this context. <o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span lang="EN-US" style="font-family: 'Trebuchet MS', sans-serif; font-size: 12pt; line-height: 115%;">We have expanded the resources of the IMF enormously, largely to support programmes in rich countries. We now need to take steps to substantially expand the resource base of Multilateral Development Banks so that they have the firepower to help developing countries pursue their development goals. The G-20 Framework Working Group and the Financial Stability Board could examine how to enhance investment in infrastructure through country commitments and incentives in the regulatory framework. <o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span lang="EN-US" style="font-family: 'Trebuchet MS', sans-serif; font-size: 12pt; line-height: 115%;">He reminded the need to refocus on a few goals rather than dissipating energies on too many fronts. <o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span lang="EN-US" style="font-family: 'Trebuchet MS', sans-serif; font-size: 12pt; line-height: 115%;">He said that like other emerging economies, India too has slowed down. The global downturn and especially the impact on capital flows have played their part. Internal constraints have also affected performance and we are working to correct them. <o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span lang="EN-US" style="font-family: 'Trebuchet MS', sans-serif; font-size: 12pt; line-height: 115%;">Our growth rate in 2011-12 declined to 6.5% from the level of 8.4% in the previous year. This may look like a reasonable figure, given growth rates being experienced in the rest of the world, but our public is impatient for a return to high growth and faster jobs creation. The fundamentals of the Indian economy remain strong and we are confident of bringing back the rhythm of high growth of 8-9% per annum. <o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span lang="EN-US" style="font-family: 'Trebuchet MS', sans-serif; font-size: 12pt; line-height: 115%;">Investment has been affected by the adverse global climate which impacts both foreign and domestic investors. We are taking steps to revive investor sentiment. We are determined to create an environment that would boost investor sentiment and promote an atmosphere conducive to enterprise and creativity. Our policies will be transparent, stable and designed to provide a level playing field to both domestic and foreign investors. <o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span lang="EN-US" style="font-family: 'Trebuchet MS', sans-serif; font-size: 12pt; line-height: 115%;">We are focussing heavily on infrastructure investment and in this context we have set ambitious targets to keep infrastructure investment on track and also put in place a problem resolution mechanism to overcome implementation bottlenecks. <o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span lang="EN-US" style="font-family: 'Trebuchet MS', sans-serif; font-size: 12pt; line-height: 115%;">Like other countries, we too allowed the fiscal deficit to expand after 2008 to impart a stimulus. We are now focussing on reversing the expansion. This will require tough decisions, including on controlling subsidies, which we are determined to take. <o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span lang="EN-US" style="font-family: 'Trebuchet MS', sans-serif; font-size: 12pt; line-height: 115%;">In this context, I would like to mention a landmark effort underway in India to provide unique identity numbers for all residents with capture of biometric data. This massive database covering over a billion people will facilitate delivery of a whole range of financial and other services, through effective targeting and reduced leakages in subsidy schemes.” <o:p></o:p></span></div></div>

India: PM Addresses the Plenary Session of G-20 Summit

The Prime Minister, Dr. Manmohan Singh at the first Plenary Session of the G-20 Summit, at Los Cabos, Mexico on June 18, 2012. Photo © PIB...

India: Prime Minister’s interaction with mediapersons at the conclusion of the G20 conference.

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<div align="center" class="MsoNormal" style="text-align: center;"><b><i>The Prime Minister, Dr Manmohan Singh, interacted with media persons after the conclusion of the G20 conference in <st1:place w:st="on"><st1:city w:st="on">Cannes</st1:city>, <st1:country-region w:st="on">France</st1:country-region></st1:place>.<o:p></o:p></i></b></div><div class="MsoNormal" style="text-align: justify;"><br />
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<tr><td class="tr-caption" style="text-align: center;"><div align="center" class="MsoNormal" style="text-align: center;"><span class="apple-style-span"><i><span style="color: black; font-size: 8.0pt;">Dr. Manmohan Singh in Cannes, <st1:country-region w:st="on"><st1:place w:st="on">France</st1:place></st1:country-region>(PIB file photo).</span></i></span><i><span style="color: black; font-size: 8.0pt;"><o:p></o:p></span></i></div></td></tr>
</tbody></table><b>Q1. You said there maybe a spillover of the European crisis on <st1:country-region w:st="on"><st1:place w:st="on">India</st1:place></st1:country-region>. How serious is that threat, because one-third of our business is with these countries only?</b></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;">A1. Well. We are living in an increasingly integrated, globalized world. And there are many linkages which we have with <st1:place w:st="on">Europe</st1:place>. <st1:place w:st="on">Europe</st1:place> is our largest trading partner. It is a very important source of capital flows, technology flows. Therefore if the Eurozone is in crisis, it affects us in many ways. If growth in Eurozone slows down, their import demand will slow down, and we will also be affected as part of that process. If the financial markets are in a disturbed state, there will be instability, insecurity, and therefore capital might not flow in our direction, in the manner in which we would like. In the same way, technology flow can also be affected when there is a growing uncertainty in the economic environment. Therefore, it is in our interest that the Eurozone countries should get their act together, and present a credible picture of resolving the tensions that have arisen.<o:p></o:p></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><b>Q2. The statement says that the Communique endorses our call for increased banking transparency. How effective is this going to be in bringing black money back home?<o:p></o:p></b></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;">A2. Let me say that I am no astrologer. We have to operate in a world where things are not entirely to our own liking. We are dealing with sovereign countries, and they will cooperate with us only to the extent that their laws permit them to do so. We are trying to negotiate new agreements: information exchange agreements (Tax Information Exchange Agreements), tax agreements (Double Taxation avoidance Agreements). It is a work- in- progress. The honest answer to your question is: first of all I really do not know what is the magnitude of the so-called black money lying abroad. Secondly, I really do not know that we have a fool-proof mechanism to ensure that we can bring back this money within a short period of time. We have to create an environment, in which our people would have, themselves, an incentive to bring back this money at home; that India is a land of opportunity; that, therefore, it is no longer necessary for people with surplus money in India to think of greener pastures outside. I think that is the only secure, long-term way to create an environment in which we will discourage the flow of such money to foreign countries.<o:p></o:p></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><b>Q3. On tough decisions that need to be taken in <st1:country-region w:st="on"><st1:place w:st="on">India</st1:place></st1:country-region>, in terms of fiscal deficit. Are you looking at deregulating fuel prices, cutting subsidies, raising taxes etc?<o:p></o:p></b></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;">A3. I attach great importance to the task of fiscal reconsolidation. We cannot live beyond means. And we also have to recognize that money simply does not grow on trees. So, the commitment that we have to the country to have a fiscal deficit of 4.6 percent as projected in the budget has to be taken seriously. Even though there are circumstances in which there may be slippages, but the general direction of our economy has to be to get the fiscal system in balance, get the expenditure flows in balance, consistent with the availability of resources. If in the process, we have to cut some expenditure, cut some subsidy, I think in principle that is the only way in which you can manage your fiscal system. Of course, there is also scope under favourable conditions, of disinvestment. These are three or four methods of getting the fiscal system in order. But, having said that, what we should do at any particular moment of time is the subject matter of political feasibility. Therefore, the timing of what you have talked about, or what I have talked about, is, I think, a matter which has to be carefully worked out.<o:p></o:p></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><b>Q4. Emerging economies including <st1:country-region w:st="on">China</st1:country-region> and <st1:country-region w:st="on"><st1:place w:st="on">India</st1:place></st1:country-region> have said they would be OK in supporting the Eurozone, via possibly, the IMF. Is there a quid pro quo, for <st1:country-region w:st="on"><st1:place w:st="on">India</st1:place></st1:country-region>?<o:p></o:p></b></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;">A4. Well, I have already mentioned, we have a stake in the orderly functioning and prosperity of the European market, because <st1:place w:st="on">Europe</st1:place> is our largest trading partner. It is a very important source of capital inflows into our country, technology flows in our country; and if the financial system of <st1:place w:st="on">Europe</st1:place> is not in good shape, capital flows can be affected. Also, if the banking system of <st1:place w:st="on">Europe</st1:place> is not in good shape, many of our entrepreneurs require trade credit, short-term credit. Now, the whole intricate system of capital flows, trade flows, in an increasingly inter-dependent world that we live in, gets disrupted. If that happens, it will be some cause for worry, for <st1:country-region w:st="on"><st1:place w:st="on">India</st1:place></st1:country-region> as well.<o:p></o:p></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><b>Q5. Food inflation is at a record high, and petrol prices too have been raised. Do you see this as fallout of what’s happening across the globe?<o:p></o:p></b></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;">A5. Many people in the meeting referred to commodity price inflation. Some attribute it to the easy money that is available as a result of qualitative easing in a number of developed countries like the <st1:country-region w:st="on"><st1:place w:st="on">United   States</st1:place></st1:country-region>. But that, honestly, is a subject matter on which there is no unanimity. Food inflation in our country is a problem. But, you would have noticed that within food inflation, if you make a distinction between foodgrain prices, they are relatively stable. What prices are going up are prices of vegetables, prices of eggs, prices of fish – the secondary and tertiary food items. Now, that obviously is a reflection of the demand for these commodities exceeding the supply. That, in turn, to some extent, at least, is a sign of growing prosperity of our country. Our national income is increasing at the rate of 8 percent per annum, our population is exceeding at the rate of 1.6 percent per annum. So the per capita income of our country is growing at 6.5 percent to 7 percent. It is bound to lead to demand for more diversified type of food basket. I am not saying that this is a fool-proof way of describing this complex reality. But in analyzing food inflation, I think this is an aspect which must not be lost sight of.<o:p></o:p></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><b>Q6. Can the government reconsider its decision to deregulate petrol prices? Can we see government intervening in petrol prices?<o:p></o:p></b></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;">A6. Well, that (deregulation) is the general direction in which we should move. I think the move to decontrol petrol prices is a part of that process. But as I said, these are very sensitive areas. And I have no hesitation in saying that ultimately we must allow markets to find their own level, except for those commodities which are in the nature of semi-public goods. So, the direction of change is quite clear. We must move in the direction of decontrolling more and more prices.<o:p></o:p></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><b>Q7. Mr Sarkozy announced in his press conference that they had been seeking an agreement that countries should not prohibit the export of cereals or foodgrains or gas. Could you go into some of the details about that?<o:p></o:p></b></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;">A7. I can say what Mr Sarkozy was saying. Naturally, in a world in which movements of commodities can be the subject matter of ad hoc restrictions being imposed, that creates added uncertainty. That does not help create transparency in the functioning of the markets for commodities. Therefore, in an ideal world, I think, that is a goal which everyone should subscribe; that it should not be necessary for any country to arbitrarily impose a complete ban.  But as I said, we are in a world of politics. Our prime necessity is to protect our own population. Politicians, before they can become statesmen, they must remain in office long enough.<o:p></o:p></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><b>Q8. You made a reference to multilateral development banks in your speech yesterday…<o:p></o:p></b></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;">A8. I said multilateral development banks, their capital base have to be increased.<o:p></o:p></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><b>Q8(s) Is the lack of money flowing into World Bank affecting countries like <st1:country-region w:st="on"><st1:place w:st="on">India</st1:place></st1:country-region>?<o:p></o:p></b></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;">A8(s) Well, I think, indirectly, everything affects everything else. If the world is faced with the prospect of shortage of resources and if you direct resources in a particular direction, other users will have some issues. But there is no direct relation, as IMF issues fresh SDRs and it has no adverse affect on the capital flows of the World Bank. If you recall in the old days, when the future of the SDRs was being discussed, many developing countries used to argue that the SDRs should be created and they should be made available to agencies like IDA, or should be used to increase resource flow to developing countries.<o:p></o:p></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><b>Q9. What has <st1:country-region w:st="on"><st1:place w:st="on">India</st1:place></st1:country-region> managed in this summit?<o:p></o:p></b></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;">A9. We are a part of the G20 setup. The G20 setup – its primary concern is towards an orderly growth of the international economy; to ensure that development processes are not disrupted by sudden upsurge of uncertainty in developed countries – and it is an essay in persuasion. We are not writing new treaties. We are laying down guidelines, which will hopefully, be converted some day into new rules of the game. But as of now, we have not reached that stage, where, in a one and a half day conference, we can reach agreement on binding commitments for the future.<o:p></o:p></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><b>Q10. On MFN status being granted by Pakistan to India<o:p></o:p></b></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;">A10. I have, rightly or wrongly, always believed that the destinies of the countries of <st1:place w:st="on">South  Asia</st1:place> are very closely linked. I welcome the decision of <st1:country-region w:st="on"><st1:place w:st="on">Pakistan</st1:place></st1:country-region> to grant us the MFN status. It should have been done long ago. I think it was seventeen years ago that <st1:country-region w:st="on">India</st1:country-region> gave MFN treatment to <st1:country-region w:st="on">Pakistan</st1:country-region>, unilaterally, and <st1:country-region w:st="on"><st1:place w:st="on">Pakistan</st1:place></st1:country-region> has taken so much time. Der Aaye, Durust Aaye.  I welcome that. If it is a reflection of a new attitude, that within the SAARC context, our countries can work together to realize our growth potential, of regional trade, of regional capital flows, of regional technology flows, there are so many things we can do together. If this is a reflection of new change, a new mindset, I welcome that, but we have to watch.<o:p></o:p></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><b>Q11. On uncertainty in global economy<o:p></o:p></b></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;">A11. If anyone thought that the Eurozone crisis, which has been in the offing for the last three years, will melt, as a result of a one-and a half day conference, I think it was over-exuberance in thinking. What I would describe as the outcome of the conference was that the Greek decision not to have a referendum, and the decision of <st1:country-region w:st="on"><st1:place w:st="on">Italy</st1:place></st1:country-region> to have IMF monitor its programme, it does provide breathing space. But the Eurozone is faced with problems. It is a monetary union without having a fiscal union. If you want to have a fiscal union, it would require a change in the constitution of many countries belonging to the Eurozone. And that is an uncertain process. Otherwise also, Eurozone has a basic defect in the sense, that it does not have a lender of last resort. The only institution which is capable of acting as a lender of last resort for the Eurozone is the European Central Bank. The ECB, I am told, is not allowed to lend directly to governments. If somehow, a lender of the last resort function could be evolved for the ECB that would be an act inspiring great confidence in the future of the Eurozone.<o:p></o:p></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><b>Q12. The big takeaway for India from the G20<o:p></o:p></b></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;">A12. We are not here to collect any kudos, or to collect any money. This is a deliberative conference, where 20 countries responsible for 80 percent of the world’s economy, sitting together, exchanging ideas, exchanging views, about how the world is moving, what we can do to make it function in more orderly fashion, how can we work together to ensure that public policies are in line with the felt needs of people This is essentially, an essay in persuasion. And it is in that context that we should view the outcome of this conference. I think, we are a country which requires the support of the rest of the world. We are today a big trading nation. We are also a country which requires a large amount of capital: both direct capital, and institutional flows. We are a country, which requires import of technology in selected areas. And all this, presumes, that the world economy is in reasonably good shape to enable these processes to proceed in an orderly fashion. So it is in that context, as I said, that we have a vested interest, in the well-functioning of the European markets.<o:p></o:p></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><b>Q13. None of the scheduled bilateral took place?<o:p></o:p></b></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;">A13. I did have a good chat with Chancellor Merkel. She is a very good friend of mine. She again invited me to visit <st1:country-region w:st="on"><st1:place w:st="on">Germany</st1:place></st1:country-region>. I promised her that I may not be able to come, but she is always welcome. And she said she is always very happy to come to <st1:country-region w:st="on"><st1:place w:st="on">India</st1:place></st1:country-region>. So, those few minutes that I snatched from her time, I think, were a very valuable addition to my stock of knowledge of the functioning of the Eurozone. I mentioned to Chancellor that it has been my view for a long time, that for Eurozone to survive in a world in which, it is a monetary union without a fiscal union, requires somebody to perform the role of a lender of last resort. And I was very happy to see Chancellor herself recognizing that that is one of the weaknesses of the current system.<o:p></o:p></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><b>Q14. Concerns on money laundering, corruption, how responsive have the G20 countries been.<o:p></o:p></b></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;">A14. If you go by the communiqué these are concerns which are shared by all the members of the G20. The communiqué reflects those concerns on corruption. And they welcome our ratification of the UN convention on corruption.<o:p></o:p></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><b>Q15. Has there been a commitment made by <st1:country-region w:st="on"><st1:place w:st="on">India</st1:place></st1:country-region> on GST and DTC?<o:p></o:p></b></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;">A15. It is not a commitment, in the sense that there is no legally binding agreement. But it is our intention to get the fiscal system in order. As part of the Mutual Assessment Process, we have stated that it is our desire in the medium-term to get mastery over the fiscal problem, and that would require introduction of a Direct Taxes Code, that would require also Goods and Services Tax, and that would also require probably, some tinkering with taxes. That is part of the Mutual Assessment Process exercise.<o:p></o:p></div><div class="MsoNormal" style="text-align: justify;"><o:p></o:p></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><b>Q16. On the handshake with the Chinese premier.<o:p></o:p></b></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;">A16. I have very good relations both with President Hu Jintao, and with Prime Minister Wen Jiabao, and when I spoke yesterday, at the BRICS meeting, the President, as I walked past him, he came to me, and he congratulated me, and  he said how similar is our thinking on global problems. There is a great similarity of thinking on global problems, between what I said at the BRICS meeting, and what President Hu Jintao said.</div><div class="MsoNormal" style="text-align: justify;">Source-PIB</div></div>

India: Prime Minister’s interaction with mediapersons at the conclusion of the G20 conference.

The Prime Minister, Dr Manmohan Singh, interacted with media persons after the conclusion of the G20 conference in Cannes , France . Dr....

G20 Agrees to Boost IMF Resources

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<div class="MsoNormal" style="text-align: justify;"><span class="apple-style-span"><span style="color: black;">The Group of 20 leading economies has agreed to increase the resources of the International Monetary Fund to help curb the European debt crisis.<o:p></o:p></span></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span class="apple-style-span"><span style="color: black;">European Union President Herman Van Rompuy said the decision was reached Friday at the G20 summit in the French resort of <st1:city w:st="on"><st1:place w:st="on">Cannes</st1:place></st1:city>. But the shape of the additional aid for the IMF remained uncertain at a time when some of the world's largest economies, such as the <st1:country-region w:st="on">U.S.</st1:country-region> and <st1:country-region w:st="on"><st1:place w:st="on">China</st1:place></st1:country-region>, are facing their own economic difficulties.<o:p></o:p></span></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span class="apple-style-span"><span style="color: black;">The world leaders discussed a variety of options, including setting aside a special IMF fund for assisting debt-ridden European governments. <o:p></o:p></span></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><st1:country-region w:st="on"><st1:place w:st="on"><span class="apple-style-span"><b><span style="color: black;">Greece</span></b></span></st1:place></st1:country-region><span class="apple-style-span"><b><span style="color: black;"> referendum dropped <o:p></o:p></span></b></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span class="apple-style-span"><span style="color: black;">Efforts to contain the European governmental debt contagion remained at the forefront of the G20 discussions, even after Greek Prime Minister George Papandreou on Thursday dropped his plan to hold a referendum on the week-old European debt-relief agreement. Under pressure from the <st1:country-region w:st="on">U.S.</st1:country-region> and emerging economies, <st1:country-region w:st="on"><st1:place w:st="on">Italy</st1:place></st1:country-region> agreed that the IMF would monitor implementation of its austerity measures aimed at keeping it from needing a bailout.<o:p></o:p></span></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span class="apple-style-span"><span style="color: black;">On the second and final day of their summit, the world leaders also focused on the stabilization of the global economy and efforts to boost domestic consumption in their respective countries.<o:p></o:p></span></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span class="apple-style-span"><b><span style="color: black;">Rescue package <o:p></o:p></span></b></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span class="apple-style-span"><span style="color: black;">Thursday's talks were largely overshadowed by <st1:country-region w:st="on">Greece</st1:country-region>'s hesitancy to abide by the terms of the financial rescue package agreed to last week by the European Union, under which European banks plan to forgive $140 billion in Greek debt in exchange for the <st1:city w:st="on">Athens</st1:city> government's agreement to adopt years of austerity measures that are hugely unpopular in <st1:country-region w:st="on"><st1:place w:st="on">Greece</st1:place></st1:country-region>.<o:p></o:p></span></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span class="apple-style-span"><span style="color: black;">Late Thursday, French President Nicolas Sarkozy again urged <st1:country-region w:st="on"><st1:place w:st="on">Greece</st1:place></st1:country-region> to accept the deal.<o:p></o:p></span></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span class="apple-style-span"><span style="color: black;">"I have admiration for <st1:country-region w:st="on"><st1:place w:st="on">Greece</st1:place></st1:country-region> and its people. I have old family ties there, and in no way would I want to give the impression that we are interfering in their domestic affairs," he said. "But on the other hand, this is about the defense of the euro and the defense of <st1:place w:st="on">Europe</st1:place> - and that's our duty. For us, the red line is very simple. <st1:place w:st="on">Europe</st1:place> and the euro are our homeland - and that has to be defended."<o:p></o:p></span></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span class="apple-style-span"><span style="color: black;">Earlier this week, Papandreou caused global financial panic by announcing a nation-wide vote on the bailout plan. He backed off his call for the vote after Greek opposition parties finally agreed to back the rescue package.---<i>VOA News</i><o:p></o:p></span></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div></div>

G20 Agrees to Boost IMF Resources

The Group of 20 leading economies has agreed to increase the resources of the International Monetary Fund to help curb the European debt cr...

G20 Summit 2011: India Wants G-20 Nations to Share past Banking And Tax Information

G20 Summit 2011: India Wants G-20 Nations to Share past Banking And Tax Information

The Prime Minister, Dr. Manmohan Singh attends the 3rd session of G-20 Summit , in Cannes , France on November 04, 2011. PIB Photo CANNE...

Dr. Manmohan Singh at the plenary session of G-20 Summit

<div dir="ltr" style="text-align: left;" trbidi="on"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgzVbJQ52LaUwzjRkcNLUL2QyZCEI_bCdBt4YgoRVsYAnSnhwevkQxhgX5wTjoirXM22a5afRZiA9YR-IUHLxTaS1IAMlsxbdENzfbNQbsNgV0KUqjswfNvIy5WZ-LdmSaM2VLM9nfCq0M/s1600/pming20.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="265" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgzVbJQ52LaUwzjRkcNLUL2QyZCEI_bCdBt4YgoRVsYAnSnhwevkQxhgX5wTjoirXM22a5afRZiA9YR-IUHLxTaS1IAMlsxbdENzfbNQbsNgV0KUqjswfNvIy5WZ-LdmSaM2VLM9nfCq0M/s400/pming20.jpg" width="400" /></a></div><br />
<div class="MsoNormal" style="text-align: justify;"><span style="font-family: 'Trebuchet MS';">The Prime Minister, Dr. Manmohan Singh with the Prime Minister of Canada, Mr. Stephen Harper, the President of South Africa, Mr. Jacob Zuma and the Prime Minister of Ethopia, Mr. Meles Zenawi, at the plenary session of G-20 Summit, in Cannes, France on November 03, 2011.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
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Dr. Manmohan Singh at the plenary session of G-20 Summit

The Prime Minister, Dr. Manmohan Singh with the Prime Minister of Canada, Mr. Stephen Harper, the President of South Africa, Mr. Jacob Zuma...

G20 Summit Focuses on Eurozone Debt Crisis

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<tr><td class="tr-caption" style="text-align: center;"><div class="MsoNormal"><i><span style="font-size: 7.0pt;"><a href="http://www.flickr.com/photos/donkeyhotey/5817264792/"><span style="text-decoration: none;">© flickr.com/donkeyhotey </span><span style="font-style: normal; text-decoration: none;"><o:p></o:p></span></a></span></i></div></td></tr>
</tbody></table><br />
<div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: 'Trebuchet MS';">Leaders of the world's leading economies are meeting in the French resort city of <st1:city w:st="on"><st1:place w:st="on">Cannes</st1:place></st1:city> to discuss global economic problems, with the summit dominated by the European debt crisis and questions about a Greek bailout deal.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: 'Trebuchet MS';">U.S. President Barack Obama met separately with German Chancellor Angela Merkel and French President Nicolas Sarkozy, who lead Europe's strongest economies, before Thursday's official start of the Group of 20 summit in <st1:city w:st="on"><st1:place w:st="on">Cannes</st1:place></st1:city>.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: 'Trebuchet MS';">President Obama said the European Union has taken some "important steps" to address its debt problems, and said he hopes the heads of the world's leading developed and developing countries can "flesh out" details of a comprehensive strategy to resolve the crisis.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><st1:country-region w:st="on"><st1:place w:st="on"><span style="font-family: 'Trebuchet MS';">U.S.</span></st1:place></st1:country-region><span style="font-family: 'Trebuchet MS';"> officials said the summit would also follow up on last year's meeting and discuss issues including global economic growth and how to put people back to work in countries with high unemployment.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: 'Trebuchet MS';">In an emergency meeting of European leaders ahead of the G20 summit, President Sarkozy and Chancellor Merkel said Wednesday that <st1:country-region w:st="on"><st1:place w:st="on">Greece</st1:place></st1:country-region> would not receive "one more cent" of rescue loans from the EU or the IMF unless it abides by the terms of the economic bailout package reached last week.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: 'Trebuchet MS';">"We very clearly say that the sixth tranche can only be paid when <st1:country-region w:st="on"><st1:place w:st="on">Greece</st1:place></st1:country-region> has accepted all parts of the decision of October 27th, and additionally, every doubt concerning the result of the announced referendum has been dispelled," said Merkel.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: 'Trebuchet MS';">Greek Prime Minister Papandreou surprised other European leaders this week by announcing that he would put the latest international rescue plan to a referendum vote of Greeks, with whom the plan's austerity measures are unpopular.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: 'Trebuchet MS';">The wording of the proposed referendum is not clear, but Papandreou said Wednesday that <st1:country-region w:st="on">Greece</st1:country-region>'s future participation in <st1:place w:st="on">Europe</st1:place>'s common currency was at stake in the vote.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: 'Trebuchet MS';">"We need to have a wide consensus because the program we are facing is difficult, is difficult in implementation but I believe the Greek people want us to be a strong partner in the euro, in the eurozone and a strong partner in Europe," said Papandreou."And that is at stake."<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: 'Trebuchet MS';">On Thursday, Greek Finance Minister Evangelos Venizelos broke ranks with Papandreou and spoke out against the referendum. Venizelos said <st1:country-region w:st="on"><st1:place w:st="on">Greece</st1:place></st1:country-region>'s status in the eurozone cannot be made dependent on a popular vote.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: 'Trebuchet MS';">President Sarkozy said that he hopes <st1:country-region w:st="on"><st1:place w:st="on">Greece</st1:place></st1:country-region> would remain in the eurozone, but stressed that the stability of the euro was of greater importance than rescuing the Greek economy.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: 'Trebuchet MS';">The bailout agreement reached last week would forgive $140 billion in money owed by <st1:country-region w:st="on">Greece</st1:country-region> to private banks and strengthen a European bailout fund for <st1:country-region w:st="on"><st1:place w:st="on">Greece</st1:place></st1:country-region> and other countries with troubled economies. It had been been hailed as a crucial breakthrough in the efforts to solve the two-year-old European sovereign debt crisis. ---VOA News<o:p></o:p></span></div></div>

G20 Summit Focuses on Eurozone Debt Crisis