‘Trust in international financial bodies eroded’: PM Modi
2 min read . Updated: 24 Feb 2023, 10:28 AM IST
PremiumPM Modi emphasized that G20 discussions should focus on the world's most vulnerable citizens.
Prime Minister Narendra Modi on Friday said that the financial viability of many countries was threatened by unsustainable debt levels, while trust in international financial institutions has eroded. His remarks came at the meeting of G20 finance ministers and central bank governors on Friday.
He emphasized that G20 discussions should focus on the world's most vulnerable citizens. On the other hand, Indians are confident about their future, the Prime Minister said.
“Indian consumers and producers are optimistic and confident about the future. We hope you can transmit the same positive spirit to the global economy," PM Modi said.
Over the past few years, the Indian government has created a highly secure, trusted, and efficient public digital infrastructure.
“Our Digital payments ecosystem has radically transformed governance, financial inclusion, and ease of living," he added.
The meeting at a hill resort on the outskirts of the tech hub of Bengaluru is the first major event of India's G20 presidency and coincided with the first anniversary of Russia's invasion of Ukraine, which PM Modi alluded to.
"We are also witnessing rising geo-political tensions in different parts of the world. There are disruptions in global supply chains. Many societies are suffering due to rising prices," Modi said in his address to delegates.
India's presidency of the bloc comes as neighboring South Asian countries Sri Lanka, Bangladesh, and Pakistan have been seeking bailouts from the International Monetary Fund (IMF) due to an economic slowdown caused by the Covid-19 pandemic and the Ukraine conflict.
Last week, news agency Reuters reported India is drafting a proposal for G20 countries to help debtor nations by asking lenders, including China, the world's largest sovereign creditor, to take a large haircut, or accept losses, on loans.
Speaking about the effect of Covid-19 on the world economy, he said that many countries especially developing economies are still coping with its after-effects.
The Covid pandemic had delivered a once-in-a-century blow to the global economy, he stated.
Various topics including the global economy, international taxation, digital public goods for financial inclusion and global health are being discussed in the meeting. The meeting will be co-chaired by Sitharaman and RBI governor Shaktikanta Das.
(With inputs from agencies)