G20 vow to rev up global GDP by 2%

G20 vow to rev up global GDP by 2%

Will address India’s tax info concerns

The world's top 20 nations on Sunday pledged to boost global growth by 2 per cent, or over USD 2 trillion, over five years, and agreed to work on automatic tax information flow and IMF reforms — meeting key demands of India.

The communique, issued after the G20 finance ministers and central bank governors meet, also took into account concerns of emerging economies, like India, about the impact of US stimulus withdrawal by asking central banks to calibrate and clearly communicate monetary policies.

"We will develop ambitious but realistic policies with the aim to lift our collective GDP by more than 2 per cent above the trajectory implied by current policies over the coming 5 years. This is over USD 2 trillion more in real terms and will lead to significant additional jobs," it said.

A satisfied Indian Finance Minister P Chidambaram later said: "The communique has been drawn by the deputies sitting together and I think our concerns have been fully reflected in the communique". The G20 ministerial joint statement committed a global response to Base Erosion and Profit Shifting (BEPS) based on sound tax policy principles.

"We endorse the Common Reporting Standard for automatic exchange of tax information on a reciprocal basis and will work with all relevant parties...," it said. The G20 also expressed hope that it will implement the automatic tax exchange information among themselves by 2015.

Facing challenges to get trans-border details on tax issues, India has been pressing for smooth exchange of financial information. The G20 also expressed "deep regret" over delay in IMF quota reforms implementation as the US is yet to ratify it.

"Our highest priority remains ratifying the 2010 reforms, and we urge the US to do so before our next meeting in April," the two-page communique said. Quota reforms, which were to be implemented by January 2014, will increase the say of emerging economies in IMF.

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