India seeks G-20 consensus on financial policy initiatives

India has called for consensus among the Group of 20 developed and emerging economies on the policies required for reducing excessive imbalances and maintaining current account balances at sustainable levels.

Addressing the G-20 finance chiefs' meeting in Paris, finance minister Pranab Mukherjee underpinned the centrality of the mutual assessment process (MAP) and the need to enhance the multilateral process to promote external sustainability and balanced growth.

The MAP process should not, however, be seen by members as one of fabricating an iron casket or a mould that could be used to shape country specific policies in a manner that one size would fit all, he said.

The objective is clearly to arrive at a consensus on a set of 'indicative' guidelines that could reduce excessive external imbalances, he said, adding that it is necessary that members reach an agreement on timelines during the current meeting.

"Countries should pursue the full range of policies conducive to reducing excessive imbalances and maintaining current account balances at sustainable levels," he said.

Mukherjee said persistently large imbalances should be assessed against indicative guidelines in terms of their nature and the root causes of the impediments to adjustment, while at the same time remaining cognisant of national or regional circumstances.