Emerg­ing mar­kets

Southasia - - BRIEFING -

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.

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.