In an exclusive conversation with Business Today, Prime Minister Narendra Modi discussed important financial issues that were on India's G20 agenda, such as debt restructuring for nations that are dealing with high amounts of sovereign debt.
PM Modi emphasized the value of financial discipline and the need for nations to protect themselves from financial indiscipline when questioned about progress and the likelihood of agreement on these issues during India's presidency.
PM suggests that China takes advantage of debt-ridden countries
Aiming at China, PM Modi stated that certain forces have taken advantage of other countries' debt issues to prey on their weaknesses and trap them in debt.
His remarks were addressed at China, which has provided billions of dollars worth of loans, forcing almost a dozen economically developing nations into a debt trap. As a result, a number of nations, including Kenya, Zambia, Laos, Mongolia, and even Pakistan, are experiencing financial crises.
Financial restraint is crucial for all nations. Each nation has a responsibility to protect itself against financial irresponsibility, yet there are forces that have sought to unfairly benefit by triggering debt crises. These forces have taken advantage of other nations' vulnerability to trap them in debt, according to PM Modi.
He did, however, note that these nations' efforts have been hindered by debt repayments, which has reduced their available budgetary space for SDG investments.
Regarding successes during India's G20 chairmanship
According to PM Modi, the Common Framework has helped the G20 make great progress in debt restructuring during India's 2023 leadership.
"Through the Common Framework, the G20 significantly accelerated debt restructuring in 2023, while India held the G20 presidency. Only Chad underwent debt restructuring under this structure prior to India's leadership. Zambia, Ethiopia, and Ghana have achieved significant progress thanks to India's commitment. Being a significant creditor, India performed a crucial role, the prime minister added.
