Indian Prime Minister Manmohan Singh attended the G20 Summit in St. Petersburg, Russia. While speaking at the forum, he stressed the need to pay more attention to monetary policy coordination. He highlighted the difficulties faced by emerging markets, including India, in the wake of an impending switch in the U.S. Federal Reserve's approach to fiscal stimuli. This was in line with the stand taken by Singh and other Indian officials who have urged caution about the depth and manner of the so-called taper in the monetary expansion the US intends to carry out. Mr. Singh also used the global forum to send a signal to foreign investors, highlighting the steps that India has taken to reduce the country’s current account deficit to 3.7 percent of GDP in 2013-14.
On the sidelines of the Summit, the Indian Prime Minister also attended an informal meeting of BRICS leaders, where the bloc announced progress in two of its key initiatives – the BRICS Bank, or the New Development Bank, and the Contingent Reserve Arrangement (CRA) – a common pool to meet dire situations. The New Development Bank is said to have a subscribed capital of $50 billion from BRICS countries. The CRA will have a size of $100 billion. China is expected to contribute $41 billion, while India, Brazil and Russia have pledged $18 billion each, with South Africa putting in $5 billion.