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India tells G-20 to work out economic recovery plan
Publication Date : 23-04-2012
India has called upon G-20 nations, the world's top economies, to work out a "credible and ambitious" action plan to put the global economy firmly on the path of recovery as also promote strong, sustainable and balanced growth.
The proposed action plan, to be adopted by the leaders of these countries at their summit in La Cabos, Mexico, in June, should pay a greater attention to three important issues at this juncture, finance minister Pranab Mukherjee said at a meeting of G-20 finance ministers here.
"This route to reviving global growth has not received the attention that it merits," Mukherjee said speaking on "Global Economy and Framework" on the sidelines of the annual World Bank-IMF Spring meetings.
Noting that the world has "witnessed a great amount of economic and political turmoil over the past year", Mukherjee said while near-term economic data had been unexpectedly encouraging, overall economic conditions remained weak and unemployment at politically unacceptable levels.
Developing countries and emerging economies are expected to continue as growth drivers for the world economy, he said. "The fact, however, is that even growth in developing countries has decelerated," Mukherjee said, noting "the global economy is too interconnected for them to be insulated from the knockdown impact of developments in advanced economies."
As far as India is concerned, despite adverse conditions prevailing in its external environment, it is reasonably confident that the underlying growth fundamentals remain firm, he said.
The finance minister said: "We are keen to ensure that the process of fiscal consolidation gains further momentum with monetary policy remaining vigilant in dealing with inflationary pressures."
Mukherjee said he expected India's real GDP growth in financial year 2011-12 to be around seven per cent, but it was expected to go up in the current fiscal.