Problems in the Eurozone will adversely impact India’s economic: PM

Prime Minister Manmohan Singh said  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 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.

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.

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.

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

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