Leaders of the world's developed and major emerging economies are meeting here tomorrow to discuss strategies for ensuring a balanced and sustainable growth, even as India favours calibrated exit strategies and is opposed to any universal tax to fund bail out of banks.
The meeting comes against the backdrop of an emerging sovereign debt crisis in some European countries which are caught in conflicting pulls on continuing the global stimulus package.
From the Summit in Washington at the height of 2008 financial crisis to the 2009 spring Summit in London when they decided on a global stimulus package to pull the economy out of depression, the leaders are now facing conflicting demands -- from the US against early exit to European demand for heavy cutting down of government spending to eliminate deficits on the heels of Euro Zone crisis.
Prime Minister Manmohan Singh, who heads a high-power delegation to the fourth Summit of G-20, is expected to put forth the Indian view that it is necessary that the global economy continue to recover in a stable and predictable manner. For that there is need for investment and capital flows as well as an open and rule-based trading system that does not succumb to protectionist tendencies.