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318749
Mon, 02/24/2014 - 14:30
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India Satisfied With G20 Outcome, Concerns On Board

New Delhi, Feb 24, IRNA -- Satisfied with outcome of G20 meeting, Finance Minister P Chidambaram Sunday said Indiaˈs concerns with regard to withdrawal of US stimulus and need to expedite IMF quota reforms have been taken on board by the group of rich and developing nations. ˈThe communique has been drawn by the deputies sitting together and our concerns have been fully reflected in the communique,ˈ he told the PTI in an interview after conclusion of the G20 Finance Ministers and Central Bank Governors meeting. The Minister said ˈyesˈ, when asked whether he was satisfied with the G20 communique. The communique was released at the end of the conference which among others was attended by the finance ministers of several important countries, including the US, Japan, France and Australia. Representatives of global bodies like the International Monetary Fund (IMF) and the European Central Bank also participated in the conference. Collectively, the G20 represents 85 percent of the global economy. India, Chidambaram said, has expressed concern over the impact of the monetary easing by the US Federal Reserve on the developing countries and underlined the need to expedite the IMF quota reforms, which seeks to give greater say to emerging economies in the multilateral lending body. ˈ...when countries withdraw from quantitative easing they should keep in mind the spillovers on the developing countries,ˈ he said. Emerging economies followed the advice of the IMF when the major economies went through a period of downturn after the 2008 global financial crisis, Chidambaram said. ˈSo when they (the developed world) sought our cooperation during the economic downturn it is only fair that they cooperate with the developing countries during the economic recovery,ˈ he said, while referring to the remarks of the German Finance Minister Wolfgang Schaeuble that India should not attribute its problems to the monetary polices of the developed nations. As regards the tapering by the US Federal Reserve, Chidambaram said the concerns of the emerging economies have been acknowledged by the G20 and it was ˈfor the US to follow up and address the concerns of the developing countries.ˈ The US Fedˈs tapering has caused flight of capital out of emerging economies and in turn hammering their currencies. On the general mood at the G20 conference, which was taking place in the backdrop of IMF projecting acceleration of global growth to 4 per cent next year from 3.7 percent in 2013, he said, ˈthe general mood is cautious...(it is) cautiously optimistic.ˈ Taking on board Indiaˈs concern with regard to the impact of tapering, the communique said that, ˈall central banks (will) maintain their commitment that monetary policy settings will continue to be carefully calibrated and clearly communicated, in the context of ongoing exchange of information and being mindful of impacts on the global economy.ˈ Chidambaram said massive amount of investment in infrastructure is required. ˈThat is true for the whole world but developing countries require more and better infrastructure and therefore we strongly support the World Bankˈs proposal to set up a global infrastructure facility and the countries must contribute to that facility,ˈ he said. He further said: ˈWe want the 14th round of quota reforms that began in 2010 to be completed quickly by April 2014 and discussions starting on the 15th round.ˈ Chidambaram also said that India has a huge stake in the automatic exchange of information for the tax purposes as well as BEPS (Base Erosion and Profit Shifting) project. ˈ...we want them to be completed by the agreed timetable so that concrete steps are taken by all countries and laws are made by all countries,ˈ he said. When asked if he impressed upon the G20 member states that India has put its fiscal position in order, the minister said the ˈstory is well known.ˈ ˈI think they know that India has pulled back on the path of fiscal consolidation and has been able to contain current account deficit, has been able to moderate inflation... I have shared them in bilateral meetings and private conversations,ˈ Chidambaram said, adding he had no occasion to speak about about it in the forum./end

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