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G20 agrees to support infrastructure investment

Recognises the impact of the continuing crisis on the developing countries

Press Trust of India  |  Los Cabos 

In a big success for India, the countries today agreed to give priority to in in as a way to stimulate which has been stunted due to the faltering world economy and the crisis.

"We will intensify our efforts to create a more conducive environment for development, including supporting investment," said a 14-page declaration released at the end of the seventh summit of the Group of 20 developed and in this pacific ocean resort in Mexico.

The declaration said that it recognised the impact of the continuing crisis on developing countries, particularly low income countries.

"The Los Cabos declaration fully reflects our initiative that on in can play a major role in strengthening development and in stimulating global recovery," Prime Minister said in a statement at the conclusion of the summit.

Singh while pushing for expansion of in in has said it is of special significance.

"in is necessary as means of stimulating global growth," he said at the plenary session of the summit of the G20, which accounts for 80% of the global output.

"It lays the foundation for rapid growth in the longer term while providing an immediate stimulus for their economies and also for the global economy by providing a robust sources of demand," he said.

R Gopalan, Secretary in the Department of Economic affairs, said that in has never in the forefront at the as much it was at the seventh summit.

"It is significant that requirement of was brought to the fore at the Los Cabos Summit, whether the is through finance or development channels. It is for the first time that it came up in a big way at the

was successful in bringing all countries onboard. All the countries have attached significance to the idea of giving priority to development in as a way of stimulating growth," he said.

Meeting against the backdrop of the faltering world economy and the 17-nation crisis, the communique said that all members pledged to take necessary actions to strengthen and restore confidence

"Strong, sustainable and balanced growth remains the top priority of the G20, as it leads to higher job creation and increases the welfare of people across the world.

We are committed to adopting all necessary short and medium term risks, enhance job creation and reduce unemployment. We will implement all our commitments in a timely manner and rigorously monitor their implementation," the declaration said.

Amid the contentious debate of the relationship between austerity and growth, the Prime Minister had said at the summit that financial markets, which normally favoured austerity, are beginning to recognise that austerity with no growth will not produce a return to a sustainable debt position.

Singh said that his overall assessment of the meeting is that there was general agreement that policy in all countries must shift to strengthening growth.

First Published: Wed, June 20 2012. 10:18 IST