FM meets Subbarao, Bhave, Montek to discuss economy, G-20 meet

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New Delhi, Oct 29 (UNI) Amid high volatility in stock markets, Finance Minister P Chidambaram today had a meeting with top key policy makers, including RBI Governor D Subbarao, Planning Commision Deputy Chairman Montek Singh Ahluwalia and SEBI Chief C B Bhave, where the economic situation in India and the forthcoming G-20 meeting in Washington figured.

Former RBI Governor and Rajya Sabha member C Rangarajan was also present at the meeting. The economic experts discussed India's position relating to the global financial architecture.

"A number of issues were discussed, including the position India must take at the forthcoming G20 Summit," Mr Subbarao told reporters here.

''Today's meeting was about what will be India's response at the Summit on various issues,'' Mr Rangarajan said.

Mr Chidambaram is slated to address the Summit on November 15.

World leaders will discuss the need for changing international financial architecture.

The meeting among the top brass took place at the Finance Ministers office in North Block.

Informed sources said the meeting discussed the fiscal and monetary measures taken by the government and the Central Bank to address the liquidity crunch.

The need for financial market regulators remaining vigilant was also discussed.

The Summit has been summoned by US President George W Bush, where he has invited leaders from 19 countries and the European Union. A key concern that will be taken up at the Summit relates to the global financial crisis and the need to take corrective measures, including regulation, to check the slide, which has taken in its fold almost the entire world.

Established in 1999, the G-20 is an informal group aimed at engaging the rich and developing countries on economic issues. The meeting will see the coming together of the Finance Ministers and Central Bank Governors who will put their heads together to check what has come to be known as the world worst financial crisis since the Great Depression of the 1920s.

Apart from the US, the European Union and India the G-20 comprises countries such as Argentina, Australia, Brazil, Canada, China, France, Germany, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom.

India is increasingly playing an important role in the global fora, such as the WTO, G-7 and G-20. It has acquired the reputation of being the leader of the developing world.

The meeting which Mr Chidambaram took this morning assumes significance in this respect.

Despite the RBI taking sustained measures to ease liquidity, the stock markets continue to witness high volatility. For the past several months the stock markets have been on a downhill with little impact on the bourses of the economic policy measures.

Continued high inflation rate of about 12 per cent in the face of falling global commodity prices and softening of crude prices have been a matter of concern, as also the slowdown in industrial production and the prospects of a lower GDP growth.


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