[G20 Summit in China] Interview with DInesh Sharma, Asstt. Minister of Finance of India: G20 expected to strengthen policy coordination, and not take unilateral actions
Sharma also stresses that the turbulences and challenges faced by these emerging markets are partly attributed to insufficient policy coordination, especially for India as an emerging economy. Therefore, all G20 major economies are supposed to strengthen their efforts in policy coordination, and no country is allowed to take any unilateral action.
As one of the fastest-growing major economies in the world in 2015, India has been playing a vital role in the frameworks of New Development Bank of BRICS nations (hereinafter referred to as NDB) and Asian Infrastructure Investment Bank (hereinafter referred to as AIIB). Like many other economies in the world, India also needs to embrace the challenges posed by a slackening recovery of world economy and shrinking external demands; but the pressure for India is relatively less.
Mr. Dinesh Sharma, Assistant Minister of Finance in India, gave an interview to China Business News when he was attending the G20 Summit meeting of Finance ministers and Governors of central banks between February 26th and 27th. “Judging from the statistics, South Asian countries boast a sound developing momentum, compared with Europe and US in particular,” he says.
Sharma also stresses that the turbulences and challenges faced by these emerging markets are partly attributed to insufficient policy coordination, especially for India as an emerging economy. Therefore, all G 20 major economies are supposed to strengthen their efforts in policy coordination, and no country is allowed to take any unilateral action.
G20要加大力度政策协调 G20 major economies are supposed to strengthen their efforts in policy coordination
由于印度财政部长阿伦•贾伊特利(Shri Arun Jaitley)需要在29日发布印度2016财年预算案，他无法出席此次财长会。夏尔马作为助理财长全权代表贾伊特利参加。同行的还有印度储备银行行长拉古拉姆•拉詹(Raghuram Rajan)。
Shri Arun Jaitley, Minister of Finance in India, is unable to attend G20 summit for finance ministers and governors of central banks in person, as he is occupied with the annual budget of India for fiscal year 2016. Therefore Sharma attended the summit as the Assistant Minister, and the plenipotentiary of Minister Jaitley. Raghuram Rajan, Governor of the Reserve Bank of India, also attended the summit on India’s behalf.
The G20 communique, which was released on February 27th, proclaims that the Finance Ministers and Governors of central banks of all G20 economies all give consent to the use of all policy instruments, and will jointly use them – including currency, finance and structural reforms – to achieve the growth targest.
Sharma also endorses the plan, in the light of the practical conditions and demands of Indian and other emerging economies. In an interview with China Business News, he stresses that speaking of monetary policy coordination, there is no such thing as a “common policy” applicable to all G20 economies. What he means by “coordination” is a delicate state that the policies of a country do no harm to its neighboring countries, nor be hampered by the policies of its neighboring countries.
Sharma points out that policy coordination between all G20 economies is a must . At this moment, the major economies are supposed to strengthen their efforts in policy coordination, rather than point fingers at the policies of other economies, and interfere or make unreasonable demands.
基础设施投资为资本提供安全去处 Investment in infrastructure facilities provide a reliable destination for capital safety
Apart from Assistant Minister of Finance, Sharma also assumes the posts of Mayor of Lucknow, and Vice President of BJP. He fully endorses the proposal that the G20 economies add investments in infrastructure facilities.
Sharma tells the reporter of China Business News that investment of infrastructure facilities is given top priority among all discussions. He believes that all G20 economies should set a common goal for additional investments of infrastructure facilities, and all the investment plans should be fully executed.
Increase of investments in infrastructure facilities is a chief topic, and also a common sense at the G20 meeting of Finance Ministers and governors of central banks held in Shanghai. The summit also attaches great importance to the interconnection of each economy with their infrastructure construction, and proposes to launch a global infrastructure connectivity alliance initiative to enhance the cooperation and synergy of infrastructure programs. Besides, the headquarters agreement of NDB is signed in Shanghai during the summit, and the list of the first groups of projects will be released within the first half of this year, including several projects of infrastructure facilities.
AIIB and NDB are both aimed to boost investment of infrastructure facilities globally. India is the stockholder of both AIIB and NDB. Besides, India and whole of South Asia – perhaps the most populous part in the world – are troubled by poor infrastructure facilities for a long period, and the development of regional economy is thus bottlenecked by the obvious shortfall, being unable to play its huge potential to the full. In Sharma’s opinion, therefore, India is supposed to be more closely engaged in the investment of infrastructure facilities. He is also looking forward to the prompt actions of AIIB and NDB in the near future, which are expected to pay more attention to infrastructure construction regionally and globally.
Sharma introduces to us that India will definitely put more funds into infrastructure construction, and some domestic projects will be open to foreign capital at the right time.
“Traditionally, the progress of South Asia is highly dependent on the world’s development, which means there is thriving demand in this region. However, with shrinking external demand worldwide, the pace of China’s and India’s economic development are slowing down at the same time. Apart from external demand, we should also cast our eyes upon domestic demand. If all South Asian countries can be covered with adequate infrastructure facilities, the domestic demand will rise accordingly. In addition, the local demand in South Asia region will definitely spur India’s economy for a step further,” says Sharma.
e also points out that all G20 economies should take effective measures to mend the losses caused by capital flight. Capital should be used properly and add values in flow, instead of being hung over in the air. On the other hand, investment of infrastructure facilities can provide a reliable destination for capital safety.
Sharma also believes that it’s a perfect choice for foreign investors and capital to focus on infrastructure construction in India and China. On the other hand, India and China can join hands to assist infrastructure construction in other regions, creating a win-win situation for all.