India has pressed for an effective G-20 framework to address the problem of structural imbalances and ensure sustainable growth of world economy.
"The success of this initiative (of G-20) is critical for a durable global economic recovery and for better economic and financial governance," Reserve Bank Governor D Subbarao said at the G-20 ministerial meeting.
The G-20, which is a club of developed and emerging economies, is currently engaged in formulating guidelines for identification of large imbalances and suggesting corrective steps. The structural imbalances refer to problems pertaining to high public debts, huge forex reserves, etc.
He further said the leaders of G-20 tasked the central banks to formulate indicative guidelines for identification of persistently large imbalances requiring corrective action, including their root causes and impediments to adjustment.
"We now need to finalise these guidelines... this would focus on root causes, impediments to adjustment and corrective policies and actions," Subbarao said.
He added an effective outcome is needed to provide a signal the G-20 is not only serious in ensuring strong, sustainable and balanced growth for the world economy going forward, but it also intend to create an effective and relevant institution for addressing current structural problems in a fast evolving global economy.
Talking about debt, he said in India the public debt is predominantly domestic and therefore India’s potential to influence global systemic imbalances because of public debt is negligible if not nil.