'India does not recommend exit strategy for stimulus packages to all nations'

Kolkata, Sep 23 (ANI): Union Finance Minister Pranab Mukherjee today said that India is not recommending an exit strategy for stimulus packages given to all nations in the ensuing G20 Summit to be held at Pittsburgh.

He noted these observations while speaking to the media persons on the sidelines of the Annual General Meeting of the Bengal Chamber of Commerce and Industry at Kolkata in on September 23.

The two-day G20 Summit is due to hosted at Pittsburgh in the United States from Thursday (September 24).

Mukherjee said this in the context of a proposal in the G20 Finance Ministers' meeting to work out an exit strategy for stimulus packages being extended to all nations.

He said that an exit strategy should not be implemented presently, as world economy is still to recover.

"There was a proposal in the G20 Finance Ministers meeting work out an exit strategy. But the decision, which we arrived at that, we are not recommending the exit strategy to the leaders who are assembling at the summit in Pittsburgh on 24, 25 September right now. We should wait till the recovery in the world economy are (is) more stabilised," said Mukherjee.

Members of the G20, which represent about 85 percent of the world economy, will be meeting Thursday (September 24) and Friday (September 25), where European leaders are expected to push for a deal to curb bankers' pay and bonuses.

While there has been welcome news that the recently that the economy is recovering, some analysts think that could hamper reform efforts.

The Wall Street Journal reported that a U.S. proposal to the rest of the G20 group foresaw a new global economic framework under which the United States would save more and cut its budget deficit, China would rely less on exports and Europe would make structural changes, possibly in areas such as labour law, to make itself more attractive to investment.

Further the report mentioned that the G20 countries have not decided how detailed to make their pledges to change their economies and there would be no specific sanctions for those falling short.

The G20 leaders are due to discuss other issues in Pittsburgh, including climate change ahead of important United Nations negotiations on emissions levels in December.

But differences between rich and developing countries already prevented G20 finance ministers from agreeing measures to curb global warming, casting more doubt on UN efforts to agree a new climate treaty. (ANI)