A Group photo of Leaders of the G-20 and Outreach Countries at G-20 Summit, in London

Prime Minister Dr Manmohan Singh visited London to attend the G-20 Financial Summit from 1 to 3 April, he was accompanied by a senior delegation which included Deputy-Chairman, Planning Commission, Mr. Montek Singh Ahluwalia, who is the Sherpa for the G-20 process from India.

In London, the Summit programme started with the reception by Her majesty the Queen on the first, which is followed by a dinner by the Prime Minister of the UK for the visiting G-20 leaders. The Prime Minister attended the intense programme which started with the Leaders’ Breakfast Meeting followed by Summit Plenaries in the morning, Leaders’ Lunch; and then another Plenary in the afternoon.

Prime Minister will also had bilateral meeting with Prime Minister Brown of the UK on the first, and a separate bilateral meeting with President Obama of the US on the second of April. The G-20 came into existence in 1999 following the Asian Financial Crisis. It was essentially an informal forum of major developed countries and major emerging economies representing anywhere between 85 to 90 per cent of world GDP together. It was a forum which met at the Finance Ministers, Governors of Central Bank level consistently until the financial crisis and the economic crisis which began in 2007.

The Prime Minister, Dr. Manmohan Singh addressing the Press Conference at the conclusion of G-20 Summit.

We met in London at a significant moment for the world economy and therefore for the world as a whole. I am grateful to Prime Minister Gordon Brown for the initiative that he has taken to host this second Summit of leaders of the G-20, and for the excellent arrangements that were made for our meetings.

The purpose of this Summit meeting was to take forward the search for solutions to the economic crisis facing the global economy today. The world is going though the worst recession since the Great Depression. We have fared much better than others though we are also affected. This is a global crisis requiring global solutions. Earlier today and yesterday evening, we discussed various ways in which the crisis can be addressed. An effective, credible fiscal stimulus is the responsibility of all major economies. Credit flows to developing countries also must be resumed. We must tackle the crisis in a way which does not create other problems for the future. For instance, protectionism or restrictions on the free flow of trade and persons would be counter-productive. Nor can development be halted or sacrificed in the search for solutions to the financial crisis. Hence the need for special attention to the needs of developing countries. I was happy to note that our views received wide acceptance and support.

We emphasised the need to make good the decline that has taken place in capital flows to developing countries by providing adequate resources to the international financial institutions. I am happy to say that we have succeeded in getting consensus on the need to expand the resources of the IMF and the ADB and to also bring forward the quota review in the IMF. The leaders have also agreed to a fresh issue of SDRs. These are positive decisions. Together they involve a massive provision of $ 1.1 trillion for emerging market economies. India does not need IMF funding but we have been in favour of expanding IMF resources as this will help developing countries and restore confidence about emerging markets.

We also discussed and agreed on several improvements in regulatory and supervisory functions. These will take time to take effect but they are very important. India is now included in both the Financial Stability Forum (FSF) and the Basle Committee on Banking Supervision, the two key standard setting bodies. The broad directions of the reform of financial regulation and supervision that have been agreed are in line with our thinking in India. Full Text