India, China for greater international coordination on economic policies

New Delhi, Sep 27 (ANI): India and China have called for greater international coordination on economic policies, particularly in the implementation of policy measures adopted by the G20 to boost growth and employment for promoting strong, sustainable and balanced growth of the world economy.

The two sides, during the sixth China-India Financial Dialogue held in Beijing yesterday, held in-depth discussions on new challenges facing the global economy, macro-economic situations and policies in China and India, progress on structural reforms in both countries, cooperation under multilateral frameworks as well as bilateral financial cooperation.

Both sides agreed to strengthen regular communication and coordination at various levels on macro-economic policies and major international economic and financial issues.

Both sides recognized that global economic recovery was still fragile with downside risks remaining high. Volatility in financial markets has also intensified. With growth picking up in advanced economies, there is a need for them to collaborate with Emerging Market Economies (EMEs) on the pace and timing of recalibration of their unconventional monetary policies and strengthen communication with the market to avoid negative spillovers. As a group, the EMEs have continued to grow but the pace of growth has slowed in several countries.

Both sides recognized the importance of sound macro-economic policies and sustained structural reforms for improving long-term growth prospects. The overall economic situation in China is stable and has the foundations to sustain sound development as new progress has been made in structural adjustment, consumption has realized steady growth, prices have maintained stability and employment situation has remained sound.

The fiscal policy has focused on adjusting the expenditure structure, reducing administrative spending, supporting structural adjustment and improvement of people's well-being, and providing tax incentives to small and micro enterprises. With enhanced liquidity management, the monetary policy has neither been relaxed nor tightened.

The Chinese government will continue to strive for economic development while maintaining stability, and keeping the continuity and stability of the macroeconomic policies as well as making these policies more targeted and coordinated. The government will also fine-tune the policies at an appropriate time and by an appropriate degree according to changes in the economic performance.

China will constantly deepen reform and opening up, promote economic transformation and upgrading, release domestic demand potential, stimulate market vitality and enhance the quality and efficiency of the economic development.

Notwithstanding the persistence of global economic meltdown, India's economic fundamentals remain strong. India has adopted bold macro-economic and fiscal management policies that seek to attain the twin objectives of inclusive development and high, sustained economic growth.

The Union Budget (2013-14) renewed the Government's commitment towards fiscal responsibility. It also incorporated a slew of measures aimed at boosting investments, controlling inflation, creating high quality infrastructure and ensuring comprehensive social security for the poor. The Government is continuously undertaking initiative to improve the performance of the manufacturing sector. In a recent review of this, the Government has also liberalized several sectoral caps in FDI. Several monetary measures have already been taken by the Reserve Bank of India.

The effects of persistent economic reforms undertaken in the last year have started to manifest and the full effect will eventually be seen in the overall GDP growth. India remains committed towards strengthening and deepening its reform process.

The two sides agreed to actively explore opportunities for cooperation in the process of their respective structural reforms.

Both sides acknowledged the effectiveness of bilateral coordination under multilateral frameworks such as the G-20, BRICS and international financial institutions. Both sides agreed to work together to promote the implementation of the important consensus reached in the G-20 St. Petersburg summit, strengthen the momentum of global recovery, push for faster economic growth, generate better jobs, and build on the foundation for long-term growth.

Both countries agreed to intensify cooperation with other BRICS member countries towards tangible results on the initiatives on BRICS Development Bank and Contingency Reserve Arrangement in the next BRICS summit. Both sides are committed to pushing forward reforms in the international financial institutions and urge other countries to fulfill their commitment of implementing the 2010 IMF Quota and Governance Reform expeditiously and to complete the next general quota review by January 2014.

Both sides urged the international financial institutions to increase their lending capacity to developing countries so as to expand the global aggregate demand.

Both sides recognized the importance of strengthened fiscal and financial cooperation in the expansion of bilateral trade and investment. The two sides agreed to maintain close communication, and work for more opportunities and better environment to enhance bilateral financial cooperation.

Financial regulators from both countries exchanged views on market access regulation policies for foreign banks, agreed to support banks to establish branches and subsidiaries in each other's market, and advocated deeper cooperation between financial institutions from the two countries, especially in areas of infrastructure investment and financing.

Both sides reiterated their commitment to strengthen the China-India Financial Dialogue, enhance mutual cooperation, deepen mutual trust, and promote bilateral fiscal and financial communication and cooperation.

Both sides agreed to hold the seventh India-China Financial Dialogue in 2014 in New Delhi.

Based on the Memorandum of Understanding (MoU) on 'Launching the Financial Dialogue between the People's Republic of China and the Republic of India' signed in April, 2005, the two sides have successfully held five rounds of dialogues in April of 2006, December of 2007, January of 2009, September of 2010 and November of 2011. (ANI)

Matches

MORE TOP STORIES TODAY

Punjab pull off another big chase

Punjab pull off another big chase

GAME 7, SHARJAH—Maxwell, Miller, Pujara chase down Rajasthan's 192. More »

Royal test for Kings

Royal test for Kings

Preview — Clash of philosophies between Australia-centric teams More »

Have nothing to prove to anybody — Sehwag

Have nothing to prove to anybody — Sehwag

The Nawab of Najafgarh says a good run in IPL could help his chances of a comeback on India's tour to England in June. More »

Shastri in proposed IPL probe panel

Shastri in proposed IPL probe panel

Some members stressed on the need for proposing names with an "impeccable record and clean image". More »

Duminy steals first win for Delhi

Duminy steals first win for Delhi

Furious fifties by Duminy and Dinesh Karthik end a long losing streak for the Daredevils. More »

Five things England must do to bounce back

Five things England must do to bounce back

England have appointed a new head coach in Peter Moores. More »

AB, Parthiv seal Bangalore's second win

AB, Parthiv seal Bangalore's second win

Royal Challengers overcame a stutter to cruise to the small target they were set by Mumbai Indians. More »

‘Felt like helpless minority’

‘Felt like helpless minority’

Former BCCI treasurer Ajay Shirke says emotions got the better of Srinivasan and he tried to oversimplify things by calling Meiyappan an “enthusiast.” More »

No way back for Pietersen: ECB

No way back for Pietersen: ECB

Kevin Pietersen's hopes of reviving his international career appeared to end Saturday when ECB managing director Paul Downton said there was 'no way back'… More »

Srinivasan can attend BCCI meeting

Srinivasan can attend BCCI meeting

His status as president of TNCA makes him eligible to attend the Working Committee meeting on Sunday. More »

Maxwell carves his parallel universe

Maxwell carves his parallel universe

Glenn Maxwell seems to project an icy disdain when at the crease. Match situations rarely faze him and the bubble in which he plays excludes everyone … More »

The world record that nearly wasn't

The world record that nearly wasn't

Twenty years ago this week, Brian Lara became Test cricket's highest scorer, but he almost didn't make it. More »

Moores gets second stint as coach

Moores gets second stint as coach

In a two-year spell from 2007 to 2009, the 51-year-old Moores led England in seven Test series. More »

Bangladesh senior players to see shrink

Bangladesh senior players to see shrink

Bangladesh's senior players will have three sessions with a psychological skill development coach later this month More »

BCCI is not anybody’s property — Dalmiya

BCCI is not anybody’s property — Dalmiya

Dalmiya feels that Srinivasan’s ‘power hungry’ attitude isn’t helping matters. More »

Tough for bowlers: Saeed Ajmal

Tough for bowlers: Saeed Ajmal

The 36-year-old believes the T20 format and rule changes in 50-over matches have made a real difference. More »

KP ridicules idea of day-night Tests

KP ridicules idea of day-night Tests

Kevin Pietersen has ridiculed the idea of day-night Test cricket, saying the game would be so different to proper Test cricket that we will need a whole… More »

Rajasthan edge low-scoring thriller

Rajasthan edge low-scoring thriller

The bowlers restricted Hyderabad to 133 for 6 before Rahane and Binny took Rajasthan over the line. More »

Maxwell blitz takes Punjab home

Maxwell blitz takes Punjab home

The Kings XI batsman blasted a 43-ball 95 to help his team pull off a massive chase against Chennai Super Kings. More »

BCCI members want independent probe

BCCI members want independent probe

The board members are realising after the Supreme Court's observations that something has to be done — IS Bindra More »

'BCCI lacks leaders to take on Srini'

'BCCI lacks leaders to take on Srini'

Two former BCCI presidents, Shashank Manohar and Jagmohan Dalmiya, have reacted strongly to the news of the BCCI calling an emergent meeting on Sunday… More »

Delhi look for first points against confident Kolkata

Delhi look for first points against confident Kolkata

Preview — The threat of Sunil Narine looms large again. More »

Bangalore vs Mumbai: A battle of the big-hitters

Bangalore vs Mumbai: A battle of the big-hitters

Preview — Given the firepower in both line-ups, Dubai crowd may see another high-scorer More »

Yuvraj tees off to Sharjah's delight

Yuvraj tees off to Sharjah's delight

Yuvraj Singh was hardly convincing to begin with against Delhi, but a big dose of crowd support and a helping of poor bowling meant he had the opportunity… More »