Euro crisis to dampen global markets, impact India: PM

New Delhi: Prime Minister Manmohan Singh on Saturday voiced concern that continuing problems in the eurozone will further dampen global markets and adversely impact India’s own economic growth. Singh also said that the need to revive global growth should be an issue of immediate concern which must be addressed by all world leaders.

He made these remarks prior to his departure for Mexico and Brazil to attend the seventh summit of the Group of 20 developed and developing countries (G-20) in the Mexican resort town of Los Cabos on June 18 and the Rio+20 Summit in Rio De Janeiro.

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Observing that G-20 Leaders will meet once again in the shadow of the economic crisis in the Eurozone and a “faltering” global economy, Singh said the situation in Europe is of particular concern as it accounts for a significant share of the global economy and is also India’s major trade and investment partner.

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“Continuing problems there will further dampen global markets and adversely impact our own economic growth. It is our hope that European leaders will take resolute action to resolve the financial problems facing them,” he said.

Singh emphasised on the need to revive global growth. “It is imperative that the G-20 countries work in coordination to implement policies that promote sustained growth. India has been pursuing this objective in its capacity as the Co-Chair of the Working Group on the ‘Framework for Strong, Sustainable and Balanced Growth’.

“I will stress the need to ensure primacy of the development dimension in G-20 deliberations and the need to focus on investment in infrastructure as a means of stimulating global growth,” he said.

Singh also noted that BRICS (Brazil, Russia, India, China, South Africa) countries have been the new growth poles of the global economy. “BRICS leaders have agreed to work with the global community to ensure international policy coordination to maintain macroeconomic stability conducive to healthy recovery of the global economy,” he said.

As current Chair of BRICS, India will host an informal meeting of BRICS leaders prior to the commencement of the G20 Summit to exchange views on the agenda of the Summit. On the Earth Summit in Rio, the Prime Minister said the cardinal principles of Rio 1992 must not be diluted, particularly the principle of common but differentiated responsibilities as well as equity.

“We have come a long way since the Earth Summit in Rio in 1992. Environmental concerns today occupy the centre-stage of global discourse. Yet, we are far from pursing a truly sustainable path towards development,” he said.

The UN Conference on Sustainable Development is an historic opportunity to give meaningful content to paradigm of sustainable development. At its heart lies the imperative of moving away from a resource intensive development path while ensuring inclusive and balanced development for eradicating the grinding poverty that afflicts millions.

The Rio+20 Conference is likely to debate complex and contentious issues such as green economy and Sustainable Development Goals.

“I will emphasise that we must not dilute the cardinal principles of Rio 1992, particularly the principle of common but differentiated responsibilities as well as equity, which have been at the core of global sustainable development efforts.

“We must acknowledge the continuing differences in levels of development across the world, and the need for provision of financial and technological support to the developing world if we are to work together as a global community to address our most pressing environmental challenges,” he said, adding India will work with like-minded countries to forge a consensus in this endeavour.

During his visit, the Prime Minister is expected to hold separate meeting with Russian President Vladimir Putin, German Chancellor Angela Merkel, French President Francois Hollande, British Prime Minister David Cameron, Canadian Prime Minister Stephen Harper, Chinese Premier Wen Jiabao, Lankan President Mahinda Rajapaksa, Nepalese Prime Minister Baburam Bhattarai and other leaders.

PTI