Fiscally imprudent policies, populism affect the poor: PM
Context
Prime Minister Narendra Modi has warned against populism and irresponsible financial policies, claiming that while they may produce political results in the short term, they will have far-reaching social and economic repercussions that will primarily affect the “poorest and most vulnerable.”
Caution Against Irresponsible Financial Policies and Populism:
- Modi issues a word of caution on the use of populism and reckless financial policies.
- He notes that while such actions may result in short-term political benefits, they may also have negative social and economic effects that last for a very long time.
- He makes special notice of how these effects will disproportionately hurt the weakest and most vulnerable members of society.
Sensitivity to Neighbors’ Crises:
- Modi emphasizes India’s sensitivity to its neighbours, using Sri Lanka’s current economic crisis as an illustration.
- He promotes fiscal responsibility not just at the national level but also at the state level in India.
International Gatherings in India:
- In response to criticism from nations like Pakistan and China, Modi argues that India is diverse and large.
- He says that given India’s size and variety, it is only natural that foreign gatherings and events take place throughout the country.
Climate goals and energy security:
- Modi emphasizes India’s stance on energy security by supporting a variety of energy sources.
- He highlights India’s commitment to attaining its climate targets while acknowledging that different nations have different approaches to achieving energy transition.
India’s Development Objectives:
- Modi is upbeat about the country’s chances for development.
- By 2047, he expects India to be a developed nation.
- His vision calls for a prosperous, inclusive economy that embraces innovation, the eradication of poverty, outstanding social sector outcomes, the absence of corruption, and a society that values both nature and culture.
Debt Restructuring.
- Modi emphasizes the significance of tackling debt vulnerabilities, particularly in the Global South.
- He said that India’s G-20 Presidency has made this problem a priority.
- To assist in effective debt treatment, the IMF, World Bank, and the G-20 Presidency together launched the Global Sovereign Debt Roundtable.
Reform of international institutions:
- Modi emphasizes the necessity for international institutions to change to reflect the evolving world and its realities.
- He advises that these organizations should increase the number of decision-making forums, reassess their priorities, and make sure that the voices that count are represented.
Global Economic Challenges and Inflation:
- Modi recognizes inflation as a major global problem.
- He refers to G-20 meetings on the significance of central banks openly articulating their opinions on policy.
- Given the interconnection of the food and energy markets, he also underlines the necessity for nations to exchange policy experiences in tackling food and energy price volatility.
