World Leaders Push For Reformist Measures To Bolster Investments, Job Creating: Report

New Delhi, Jan 26, IRNA -- Pushing reformist measures to bolster investments and generating more job opportunities have emerged as the top challenges for global leaders gathered at the World Economic Forum (WEF) in Davos, as they deliberated on ways to boost sagging economic growth. Indian leaders, including Anand Sharma and Kamal Nath, emphasized the need for more investments while presenting the India growth story to global investors including retailers. They also underlined the significance of inclusive economic growth. Even as global economic uncertainties persist and austerity drives reforms in Europe, leaders gathered at Davo’s snowy resort town were optimistic with IMF Chief Christine Lagarde saying world economy needs to keep up the momentum. Commerce and Industry Minister Anand Sharma, who held discussions with various multinational firms including Wal-Mart, Tesco and Novartis, said there is need for reforms but ˈright to education and creation of jobs are a must tooˈ. ˈ... the major challenge in 21st century will be how to create jobs,ˈ pti reported quoting the Minister as said. India, which has taken various reform measures to boost economic growth, assured global retail giant Wal-Mart that it will hand hold their entry into the countryˈs multi-brand retailing sector. Urban Development Minister Kamal Nath stressed the importance of inclusive growth and said, ˈthe difference between urban and rural youth has gone and India today represents an aspirational class of societyˈ. In the global context, the need for reforms in Europe, where many nations are in a debt trap, hogged the limelight. Setting the reformist tone, British Prime Minister David Cameron said it is ˈabout how we make the case for a more competitive, flexible and open Europe – not just for Britainˈs sake, but for everyoneˈs sakeˈ. Coming back to India, Sharma underlined the country would have millions of youth joining the workforce in coming years and urged industrialists to create more job opportunities. Indiaˈs national manufacturing policy envisages creation of 100 million jobs in the next decade. With sliding growth in most of the developed nations, employment opportunities are difficult to come by. Going by the International Labour Organisation (ILO), more than 75 million youth worldwide are looking for work. Striking an optimistic note, Kamal Nath said a lot should happen in the next decade and the best time for Asia and India might be there soon. According to him, investors expect ˈtoo much from Indiaˈ and a even a small dip in growth rate in profits is perceived to be very bad as there has been very high growth in the past. ˈ... the recent policy actions by the government, such as the steps with respect to fiscal consolidation and passage of key legislation, have demonstrated its commitment to creating an enabling environment for growth, and gone a long way in dispelling the fear of policy paralysis,ˈ ICICI Bank chief Chanda Kochhar said. India, which has initiated a slew of reforms in recent times, anticipates about USD 1 trillion investments in infrastructure in the next five years. Meanwhile, a WEF report said lack of competitiveness in Europe is the root cause of financial instability and rising unemployment in the region. It also called for speeding the current pace of reforms. Meanwhile, International Monetary Fund (IMF) chief Christine Lagarde today asked countries to keep up the momentum in the global economy, cautioning that it could relapse into another crisis otherwise. ˈ... keep it up, keep the momentum, donˈt relax, we should not relapse,ˈ she said. When asked if there were signs that co-operation is going to break down between countries, Lagarde said: ˈWhat I observe is that in terms of currency it has always been more efficient to work cooperatively.ˈ Recalling the incident of Japan being severely hit by earthquake and tsunami in 2011, Lagarde, who was then French Finance Minister, said she called up finance ministers of other countries to support Japan. ˈ... I immediately called all my colleague finance ministers and the central bank did the same thing in order to co-operate and support Japan, so that the yen would not appreciate as it was beginning to...,ˈ she said. ˈ... that (effort) was efficient, so co-operation is always efficient,ˈ the Managing Director of the multilateral agency said. Regarding loose money policies followed in many countries, Lagarde said that such a step was necessary in some of them. ˈI think it was necessary and in some corners it still is necessary and to the extent (that) you donˈt see inflation go up in those places. ˈWe are clearly thinking about the US, we probably thinking about Europe to certain degree, inflation is still at around two per cent, so, as long as that remains under control the (massive) public liquidity is not a huge concern, it will be wiped out,ˈ she noted./end