‘Financial viability of countries threatened by unsustainable debt’: PM Modi to G20 FMs, central bank govs

KEY HIGHLIGHTS:

• PM Modi, at a G20 meeting, said that unsustainable debt is threatening financial viability of countries
• Food and security have become major concerns, said PM Modi
• PM Modi urged the gathering to explore how technology can be used for good

Prime Minister Narendra Modi addressed finance ministers and central bank governors of G20 nations via a video message on Friday. The meeting, held at a hill resort on the outskirts of Bengaluru is the first major event of India’s G20 presidency. PM Modi, during this address, said that the financial viability of many countries was being threatened by unsustainable debt. He said that trust in international financial institutions has eroded, and that food and energy security have become major concerns across the world.

The event also coincided with the one-year anniversary of the Russia-Ukraine war, which the prime minister alluded to. 

“Food and energy security have become major concerns across the world. Even the financial viability of many countries is threatened by unsustainable debt levels. Trust in international financial institutions has eroded. This is partly because they have been slow to reform themselves,” said PM Modi. He said that it was up to the ‘custodians of the leading economies and monetary systems’ to bring back stability, confidence and growth to the global economy. 

He said that it is not an easy task and that the world is facing serious economic difficulties. “Many societies are suffering due to rising prices,” he said, a reference perhaps to neighbouring countries like Pakistan and Sri Lanka that are in the midst of economic crises. PM Modi said that the COVID-19 pandemic dealt a “once-in-a-century” blow to the global economy. 

PM Modi said that he hopes they draw inspiration from the vibrancy of the Indian economy. “Indian consumers and producers are optimistic and confident about the future. We hope that you will be able to transmit the same positive spirit to the global economy,” he said, adding that the discussions should focus on the most vulnerable citizens of the world. 

“Even as the world population has crossed 8 billion, progress on Sustainable Development Goals seems to be slowing down. We need to collectively work to strengthen Multilateral Development Banks for meeting global challenges like climate change and high debt levels,” he pointed out. 

PM Modi asked the finance ministers and central bank governors to explore how the power of technology can be used for good. “Over the past few years, we have created a highly secure, highly trusted, and highly efficient public digital infrastructure. Our digital payments eco-system has been developed as a free public good. This has radically transformed governance, financial inclusion, and ease-of-living in India. As you are meeting in Bengaluru, the technology capital of India, you will have first-hand experience of how Indian consumers have embraced digital payments,” he said. 

Talking about UPI that has been rolled out for in-bound travellers from G20 countries, PM Modi said that once the attendants of the Bengaluru meeting use and experience UPI, they will understand why Indian customers have adopted it so willingly. “Examples like UPI can be templates for many other countries too. We would be happy to share our experience with the world,” he said. 

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