PRESS TRUST OF INDIA
St. Petersburg, 6 September
Taking on board India's concerns, the G-20 Summit today acknowledged that excess volatility of financial flows and disorderly movements in exchange rates can affect economic and financial stability of emerging markets and called for sound policies to address the problem.
Coming against the backdrop of the battering that rupee suffered in recent weeks, the 27-page G-20 Leaders' Declaration committed itself to cooperate to ensure that policies implemented to support domestic growth also support global growth and financial stability and to manage their spillovers in other countries.
The Summit also shared Prime Minister Manmohan Singh's views on the need for orderly exit from the monetary stimulus undertaken in the context of 2008 economic crisis.
“In the five years since we first met, coordinated action by the G-20 has been critical to tackling the financial crisis and putting the world economy on a path to recovery. But our work is not yet complete and we agreed that it remains critical for G-20 countries to focus all our joint efforts on engineering a durable exit from the longest and most protracted crisis in modern history,” the declaration said.
It noted that the most urgent need is to increase the momentum of the global recovery, generate higher growth and better jobs while strengthening the foundations for long-term growth and avoiding policies that could cause the recovery to falter or promote growth at other countries' expense.
Meanwhile, India today said the stand taken by the G20 nations that profits of multinational companies should be taxed where economic activities deriving the profits are performed and where value is created is an “important landmark” and it validates the country's position.