New Delhi, Sep 6 (KNN) Amidst global slowdown casting its shadow on employment, Prime Minister Manmohan Singh today told world leaders that India recognises the importance of small and medium enterprises (SMEs) in job creation.
Addressing the G-20 Summit at St Petersburg, Singh said that job creation along with economic growth should be the central theme of the summit.
The G-20 is a grouping of the world’s rich and most influential countries including the USA, China, Russia and India.
“Small and medium enterprises have a leading role to play in creating jobs. I recognise the importance of this sector and note that several industrialised countries are taking steps to increase the flow of credit to small and medium enterprises.
Directed credit policies have been followed by many developing countries, and I recall we used to be criticised for them on the grounds that they interfered with prudent banking. With increased appreciation of such interventions, we need to share experience in this area,” Prime Minister said.
He also emphasized the global co-operation and sharing of international experience in skill development.
“International labour mobility in high end skills has become an important aspect of global integration across countries. Pending the evolution of international agreements in this area, we must do whatever we can to avoid new restrictive measures, which can stifle a sector that can contribute to global growth in the years ahead,” Singh said.
Meanwhile, leaders of BRICS nations – India, Brazil, Russia, China and South Africa who are also a part of the summit have decided to set up a reserve fund of USD 100 billion to guard against financial shocks.
Details of the fund are still being worked out by heads of the five countries.
Considering that the Indian rupee has weakened 24 per cent, South Africa’s rand nearly 17 per cent, Brazilian’s real 15 per cent and Russia’s rouble 8 per cent against the dollar since May, the move to establish the fund is being seen as an attempt by BRICS economies to deal with any potential volatile movements in their currencies.
Earlier this year, these nations discussed the formation of a new development bank to fund infrastructure and development projects throughout the developing nations.