India will Play its Due Role in G 20 and Support the Process of Policy Cooperation in Addressing External and Development Imbalances; Appreciates the Role of IMF in Dealing with the Recent Global Melt-Down : FM - MD, IMF Appreciates India’s Handling of Capital Inflows and Progress Made in the area of Financial Inclusion

Union Finance Minister Shri Pranab Mukherjee said that broader recovery of global economy is very crucial for the world at large including India. He appreciated the role played by International Monetary Fund (IMF) during the recent global financial crisis under the stewardship of Mr. Dominique Strauss Kahn, Managing Director, IMF and in the wide ranging reforms undertaken in IMF. He specifically mentioned the role played by IMF in the package announced for Ireland. Mr. Mukherjee made these observations during his meeting with Mr. Dominique Strauss Kahn, MD, IMF when the later called on him in New Delhi, today. Both the leaders held wide ranging discussion alongwith the officials on the global issues, the current situation in Europe, the risks to the global economy and India's role in the IMF. Complementing the role of Indian Government on its management of the economy, Mr. Kahn said that the time has come for India to play its rightful role in global economic governance. He expressed confidence in India's handling of capital inflows. 

Mr. Mukherjee stressed that India will play its due role in the G20 and support the process of policy cooperation in addressing external imbalances and development imbalances. In this regard, he reiterated India's view that global savings need to be recycled to address development imbalances as part of world community addressing global imbalances. 

MD, IMF Mr. Strauss Kahn expressed happiness about the increasing role of India in the global economy and in the IMF. He appreciated that as a fast growing balanced economy, focused on inclusive growth, India has been able to bring millions out of poverty. He said that technology, especially in the services sector, has been another hallmark of India's rapid growth. MD, IMF was of the view that the emergence of G20 has changed the rules of the game in international policy cooperation, and that emerging markets like India will increasingly play important role in the G20. He stressed that reforms in the IMF to give more voice to the EMDCs including India is making the IMF more legitimate. 

Finance Minister Sh. Mukherjee explained that inclusive growth will remain the bedrock of India's growth strategy. He said that growth is expected to reach its pre crisis levels of 9% next year. Mr. Mukherjee further added that India, apart from investing in infrastructure, was engaged in an ambitious programme of skill development in order to harness its demographic dividend and ensure long term sustainability of high growth. This will not only encourage inclusion and lead to productivity gains within the country, but also address global skill shortages, the Finance Minister added.