Rich nations must not harm emerging economies: PM

New Delhi  :  Prime Minister Manmohan Singh Wednesday said rich nations, which are showing signs of recovery, must not pursue policies that hurt the growth prospects of emerging economies.

Ahead of his departure for St. Petersburg for the G20 Summit, the prime minister said the collective focus of rich and developing countries must be on job creation and investment promotion in a bid to spur growth and sustain it.

“Though there are encouraging signs of growth in industrialized countries, there is also a slowdown in emerging economies, which are facing the adverse impact of significant capital outflows,” he said.

“I will emphasise in St. Petersburg the need for an orderly exit from the unconventional monetary policies being pursued by the developed world for the last few years, so as to avoid damaging the growth prospects of the developing world,” he added.

“It is also important that G20 encourages and promotes policy coordination among major economies in a manner that provides for a broad-based and sustained global economic recovery and growth.”

The prime minister’s remarks come at a time when the Indian rupee has dipped below 68 to a dollar, economic growth is at four-year low and stock markets have taken a hit, among other gloomy signs.

On his part, the prime minister said, India has taken steps to pursue reforms, create a more investment-friendly environment, stabilise the rupee and strengthen macro-economic stability.

“At the same time, a stable and supportive external economic environment is also required to revive economic growth,” he said.

“The G20 Summit, therefore, is an important forum to seek an international climate that is beneficial for all countries.”

On the margins of the Summit, the prime minister is also scheduled to meet with leaders of Brazil, Russia, China and South Africa, which, along with India, form the BRICS countries.

File Photo  : PIB