India likely to grow at over 8 percent next year: Modi at G20

Prime Minister Narendra Modi on Sunday said India was likely to grow at over 8 percent next year but global economic growth remained weak and it needed capital flows as also efforts to facilitate labour mobility and skill portability.

In his intervention at the G20 working session on "Inclusive Growth: Global Economy, Growth Strategies, Employment and Investment Strategies", Modi said India was likely to grow at 7.5 percent this year and achieve a growth rate of 8 percent-plus next year.

He said India has reduced inflation and current account and fiscal deficits and its programmes of inclusive development, financial inclusion, universal access to basic needs, Make in India, Skill India, Digital India, Industrial Corridors and Smart Cities will boost growth and employment in the country.

"This will be a source of strength for the global economy," he said.

The prime minister said "global economic growth remains weak, with slowdown in several major economies, volatile financial markets and competitive devaluation of currencies".

"To stimulate growth, we need to enhance public investments, not just rely on monetary policy. G20's continued call to central banks for careful communication on monetary policy actions will be helpful in keeping financial and currency markets stable," Modi said.

"Stable long term global economic growth requires not just capital flows, but also efforts to facilitate labour mobility and skill portability," he added.

He said there was global consensus on the need to address climate change but multilateral institutions should not impose such difficult safeguards and conditions on loans that they become barriers to development in many countries and undermine sustainable development.

Modi said multilateral development banks should enlarge their capital base to support infrastructure needs of the developing countries and noted that new institutions such as the New Development Bank were welcome additional sources of financing.

"G20 efforts must be aligned with the UN Sustainable Development Goals, adopted this year, particularly with the number one goal of elimination of all poverty by 2030," he said.

Modi said India welcomes the G20 focus this year on employment of women and on youth.