India has cautioned industrialized nations against simultaneously adopting concretionary policies that could provoke the risk of a double dip recession. Addressing at the fourth G20 Summit in Toronto in Canada on Sunday, Prime Minister Dr. Manmohan Singh said this could trigger negative effects on developing nations and on the prospects of achieving the Millennium Development Goals. He said, the central problem is how to ensure and protect the global growth in a situation of nervousness in the markets about debt sustainability, especially in the Eurozone. The Prime Minister said, the recovery is still fragile and private demand in the industrialized nations is likely to remain weak. The Prime minister said the risk of destabilizing the recovery is too great and faced with a much greater risk of deflation than inflation. He pointed out that primary importance should be given to consolidating the recovery along with taking measured steps to deal with sovereign debt problems. The Prime Minister maintained that the situation calls for careful coordination of policies among the G20 and a frame work to deliver strong and sustainable growth.<br/> Referring to India, the Prime Minister said with an effective fiscal and monetary stimulus, we were able to contain the effect of the global prices on our economy. He said the country's economy is expected to grow by 8.5 per cent in 2010-11 and go back to 9 per cent by 2011-12.
News On AIR | June 28, 2010 2:04 PM
PM calls for careful coordination of policies among G20 nations for strong and sustainable growth