Manmohan Singh leaves for US to attend G-20 Summit

“The Summits in Washington and London were convened at the height of the global economic crisis,and therefore focused on the urgent and the immediate. The London Summit resulted in ambitious liquidity stimulus measures and growth packages. Importantly,it pledged to mobilize USD 1.1 trillion of resources for international financial institutions,largely to sustain growth in emerging markets,” he added.

“The steps taken by the G-20 to augment the resources of multilateral development banks have led to substantial stepping up of the World Bank lending to India,” he said.

He said the global economy and financial markets have shown a distinct improvement since then,but we are still not out of the woods.

Even though our economic growth rate has slowed to 6.7 per cent in 2008-09,India approaches the Pittsburgh Summit with a sense of confidence. Our growth is primarily driven by domestic demand,our savings rate is robust and the external sector has exhibited resilience,” he added.

Dr Singh further said that the Pittsburgh Summit is expected to focus on medium and long-term issues such as a framework for sustainable and balanced growth,strengthening the international financial regulatory system,reforming the mandate mission and governance of the IMF and development banks,strengthening support for the most vulnerable,an open global economy and energy and climate change.

“It is necessary for India to engage in the management of the world economy because we have a lot at stake,and a lot to contribute,” he said.

“The expansion and strengthening of the erstwhile the Financial Stability Forum,and now the Financial Stability Board,and the Basel Committee on the Banking Supervision was a step in the right direction to address the regulatory aspects. There is a need to carry the process of governance reform of international financial institutions further to give greater voice and representation to under-represented countries,” he added.

He said the G-20 process is a continuing one and it is in our interest to ensure that it succeeds both in its short term and long term objectives.

The Prime Minister will arrive in Pittsburgh on Thursday where he will attend a reception and dinner by US President Barack Obama on the same day.

The next day,there will be a summit plenary and a lunch,which will be attended by world leaders.

He will leave Pittsburgh on September 25. Dr Singh will also be interacting with other heads of government and hold bilateral meeting with some of them.