Essential for emerging economies to become engines of growth, help resolve global crisis: Sitharaman

PTI, May 2, 2023, 6:57 PM IST

Seoul: Finance Minister Nirmala Sitharaman on Tuesday said it is essential for emerging economies to become growth engines and help in resolving challenges facing the world. She further said the G20 Presidency has come at a crucial stage to the emerging economies, stressing that three years are critical for the global economy, which is going through a reset.

India currently holds the presidency of G20, which is a grouping of developing and developed countries. India has taken over the presidency from Indonesia and will hand it over to Brazil later in the year.

Addressing the Indian diaspora in Seoul, the minister said India is being noticed worldwide not just because it is the fastest-growing large economy – this year as well as the coming year – but also because of the way in which it has handled the pandemic and economic revival.

The minister is in Seoul to attend the annual meeting of the Asian Development Bank (ADB).

She said while the advanced economies today are looking at a long-drawn recession, central banks in those countries are raising interest rates and dealing with inflation.

”In such a situation globally, how can economies, particularly emerging market economies, who are all showing good signs of growth…is it possible for us to sustain that growth, is it possible for us to give greater energy to that growth momentum so that emerging markets can literally be the engines of growth and help the global crisis be solved,” Sitharaman said.

The minister said the G20 troika — Indonesia, India and Brazil– are all emerging economies, and hence it is important that the voice of the global south be heard. The ‘Global South’ largely refers to countries in Asia, Africa and South America.

”The three years are going to be important for the global economy to reset itself and readjust to the global realities,” she said, adding there is a recession on one hand and economic revival from COVID on the other.

Also, artificial intelligence, deep data analytics and the Internet of Things are being used extensively, she added.

India, Sitharaman said, has already adopted a digital payment system, faceless tax assessment and digital ID, and is scaling up technology at a very fast pace. Companies in India are also resetting themselves, using artificial intelligence and adapting to the requirements of the 21st century. She also invited NRIs settled in South Korea to contribute to developments taking place in India in the fields of technology and innovation.

”India is going through a major rapid transformational change. Companies are also realising that this is the time to invest in such technology, which is bringing innovation and AI,” she said. Sitharaman said India is responding to climate change and also looking at it with great foresight. Achievements of the commitments made in Paris are all happening with our money and efforts.

Regretting that commitment of USD 100 billion for climate change by advanced economies is just on paper, she said that India on its own is taking steps to deal with the challenges posed by climate change. India has launched International Solar Alliance and is setting up climate-resilient infrastructure. Earlier in the day, Samsung Electronics, Global CFO, Hark Kyu Park called on the finance minister on the sidelines of ADB Annual meetings here.

”Discussions between the two were around future investment in cutting edge technology in India,” a finance ministry tweet said.