Thoughts From The G20 Summit- On The Global Economy, Climate Change & India's Economic Growth

I am in Turkey attending the G20 Summit with the other world leaders. This Summit is being held just days after the horrific terror attacks in Paris and Beirut. At the Summit we condemned the terror attacks, which killed so many innocent citizens. The need of the hour is to combat all forms of terror.

The economic agenda of the G20 Summit is quite extensive. We are meeting at a time when the global economic growth remains weak, with slowdown in several major economies, volatility in financial markets and a competitive devaluation of currencies.

During the Summit, I have shared my views on global economic issues, which I am also sharing with all of you.

To stimulate growth, we need to enhance public investments, not just rely on monetary policy. G20’s continued call to Central Banks for careful communication on monetary policy actions will be helpful in keeping financial and currency markets stable.

Multilateral Development Banks should enlarge their capital base to support infrastructure needs of the developing countries. A new institution such as the New Development Bank is a welcome additional sources of financing.

There is global consensus on the need to address climate change. However, multilateral institutions should not impose such difficult safeguards and conditions on loans that they become barriers to development in many countries and undermine sustainable development.

G20 efforts must be aligned with the UN Sustainable Development Goals, adopted this year, particularly with the number one goal of elimination of all poverty by 2030.

The G20 focus on employment of women and, on youth this year is indeed a welcome step. I must add that stable long term global economic growth requires not just capital flows, but also efforts to facilitate labour mobility and skill portability.

India: a ray of hope and optimism

India's economic growth is likely to grow at 7.5% this year and achieve a growth rate of 8% plus next year. We have reduced inflation and current account and fiscal deficits.

Our programmes of inclusive development, including Financial Inclusion, universal access to basic needs by target year, Make in India, Skill India, Digital India, Industrial Corridors and Smart Cities will boost growth and, employment in India.

This will be a source of strength for the global economy.

I look forward to more deliberations on the economic front during the meetings today.