G20 must ensure collective action to accelerate global growth: Sitharaman

The Group of 20 (G20) has the responsibility to navigate global policy coordination in effective fashion by identifying and taking strong measures for building buffers and catalysing the second wave of reforms, Finance Minister Nirmala Sitharaman has said.

She gave a clarion call for concerted action in the face of global slowdown and highlighted that emerging market economies in particular face the challenge of achieving economic growth and inclusive development while pursuing sustainable financing.

In this context, Sitharaman emphasised on the importance of countries pursuing structural reform measures to counter the growth slowdown. The minister led Indian delegation at meetings of G20 and BRICS finance ministers and central bank governors held here on Thursday where annual meetings of the World Bank Group and International Monetary Fund (IMF) were held this week.

Sitharaman highlighted structural reform measures undertaken by India recently. "We have reduced the corporate tax from 30 per cent to 22 per cent, thereby making India one of the lowest corporate tax imposing countries in the world today. This will spur investments," she said.

The minister also mentioned measures pertaining to Aaadhar-based direct benefit transfer as well as universal healthcare policy.

Among the issues discussed during BRICS FMCBG meeting included expanding membership and enhancing the effectiveness of New Development Bank's project preparation facility, developing the way forward on IMF resources as well as formulating consensus cooperation on authorised economic operators programme.

Sitharaman said sustainable recovery mechanisms need to be factored in project preparation facility guidelines so that assistance extended is recovered once a project loan is sanctioned.

In other engagements, the minister attended an industry roundtables and held bilateral meetings with British Chancellor of Exchequer Sajid Javed, Secretary of State for Development Alok Sharma, South Korean Finance Minister and Deputy Prime Minister Hong Nam Ki, World Bank President David Malpass, Special Advisor to Japanese Finance Minister Masatsugu Asakawa, Governor of Japan Bank for International Cooperation Tadashi Maeda and Global CEO of Standard Chartered Bill Winters.

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