Ahead of his summit meeting with US President Barack Obama, Prime Minister Manmohan Singh today said if India did the "right things" before his visit to Washington they will have an influence on the climate for capital flows from the US to the country.
Noting that he had important visits lined up in the coming weeks--US, Russia, ASEAN and China, Singh said all these countries are important trading partners, and therefore, whatever we may do in these meetings, they create a climate conducive to accelerating the processes of cooperation.
Singh was asked how will the Indian economy and markets benefit from his forthcoming visits to the US, ASEAN, Russia, and China.
He hoped that his discussions would certainly help to create, at the margin, a better environment for cooperation between us and these countries in matters relating to trade, in matters relating to investment."And certainly, I think, the visit to the United States, if we do the right things before going there, they will have an influence on the climate for capital flows from the United States to our country," he said. The Singh-Obama meeting is due to take place in Washington later this month.
On the Japanese swap enhancement to 50 billion dollars, Singh said it will help, but ultimately, India has to get the fundamentals of its economy in robust health. "This is something by way of a second line of defense for our currency."
"The last week, Parliament has passed some important legislation, economic legislation. That will also help to revive confidence and we have to work to ensure that the fiscal deficit does not exceed 4.8 per cent and whatever we can do to contain the current account deficit, will be put in practice," he said.
Replying to questions, Singh said there was widespread appreciation of the point that he made at the G20 summit at St Petersburg about the unintended consequences of unorthodox monetary policies being pursued by countries like the US and the Euro Zone.
"I believe we had a very successful G 20 meeting," he said.
The Leaders' Declaration and the St Petersburg Action Plan are in line with the position India had advocated in the meeting, the prime minister said.
Singh said in fact most developing countries' leaders made the same point that he had made. He had voiced concern over the unconventional monetary policies of the West and pushed for an "orderly exit" in connection with the imminent phasing out of fiscal stimulus by the US Federal Reserve.
Referring to plans by the World Bank to work on a world infrastructure financing facility, he said it will certainly help India greatly.