(a) whether India participated in the G-20 Meeting which was held recently;
(b) if so, the details thereof;
(c) the major issues raised including ongoing problem on valuation of
currencies of some countries;
(d) the follow-up action taken thereon; and
(e) the details of aspects that may affect Indian economy adversely?
MINISTER OF STATE IN MINISTRY OF FINANCE (SHRI NAMO NARAIN MEENA)
(a) & (b): Yes, Sir.
India attended G-20 Leaders1 Summit on 11-12 November, 2010 in Seoul. The Indian
delegation was led by the Hon`ble Prime Minister of India.
(c) & (d): The major issues raised and discussed and decided at the Leaders`
Summit were:
1, Undertaking macroeconomic policies to strengthen the ongoing recovery and
stability of financial markets, in particular moving toward more market determined
exchange rate systems, refraining from competitive devaluations, with advanced
economies, including those with reserve currencies, remaining vigilant against
excess volatility and disorderly movements in exchange rates.
2. Adoption of the Seoul Action Plan, including country specific actions, to move
closer to the shared objectives of stronger, sustainable and balanced growth.
Leaders have tasked the G-20 Framework Working Group (of which India is a co-
chair along with Canada) to develop these guidelines, with technical support of the
IMF, for consideration of the G-20 Finance Ministers and Central Bank Governors.
3. Adoption of the Seoul Consensus for Development based on 6 principles (Focus
on Economic Growth, Global Development Partnership, Global or Regional
Systemic Issues, Private Sector Participation, Complementarity and Outcome
Orientation) and 9 pillars (Infrastructure, HRD, Trade, Private investment in job
creation, Financial Inclusion, Growth with resilience, Food Security, Governance
and Knowledge sharing), including a multi-year action plan, and setting up a High
Level Panel (HLP) on Infrastructure.
4. Endorsing new instruments of the IMF for Global Financial Safety Nets, and
the recent IMF work on improving the global capacity to cope with shocks of a
systemic nature, including working with regional financing arrangements (RFAs).
It also endorsed, amongst others, the use of macro prudential measures as a
response to volatile capital flows.
5. Endorsing the Gyeongju G-20 FMs and Central Bank Governors agreement
on IMF reforms of a six percent shift in quota in favour of under-represented and
emerging market and developing countries (EMDCs), and a comprehensive review
of quota formula by 2013 to better reflect the economic weights of EMDCs and
completion of the next general review of quotas by January 2014.
6. Endorsing the core elements of the new financial regulatory capital and
liquidity framework (Basel III), and for measures to better regulate the SIFIs on
which work will continue. It was also agreed to work further on macro prudential
policy frameworks, strengthen regulation and oversight of shadow banking, and to
regulate commodity derivates markets.
7. Recommitting to resist all forms of protectionism, while recognizing that 2011
is a critical window of opportunity to intensify engagement to conclude the
Doha Development Round.
8. Adopting the G-20 Anti Corruption Action Plan.
Prime Minister, Dr. Manmohan Singh, during his intervention, highlighted the
importance of the G-20`s new development agenda and the need for infrastructure
investment in developing countries. His suggestion that recycling global savings through
multilateral development banks would address both the global demand imbalance as well
as the global developmental imbalance was well received.
(e) : It is unlikely that any of the above decisions will affect the Indian
economy adversely.