By TIOL News Service

NEW DELHI, MAR 13, 2016: WHILE speaking at the MoF-IMF Conference on 'Advancing Asia - Investing for the Future' yesterday, the Prime Minister, Mr Narendra Modi, asked - Why is Asia so important, and how can India contribute? and then answered - "Many knowledgeable people have said that the twenty first century is, and will be, the Asian Century. Three out of every five people in the world live in Asia. Its share in global output and trade is now close to one-third. Its share in global foreign direct investment is about forty percent. It has also been one of the world's most dynamic regions. Although Asia has slowed down, it is still growing at a rate three times greater than that of the advanced countries. It is, therefore, the ray of hope for global economic recovery."

Mr Modi also highlighted that Asian Families tend naturally to save more than people in other parts of the world. Thus Asians invest for the future. Economists have commented on the savings ethic of Asian countries. Asians tend to save to buy a house, rather than borrow to buy a house. Many Asian countries have relied more on developmental financial institutions and banks than on capital markets. This provides an alternative model for the financial sector. Social stability built on strong family values is another feature of Asia's development. Asians tend to leave things behind for the next generation, added he.

The Prime Minister also underlined that a unique feature of Asia is that many countries have had women as national leaders. Asia has done so to a much greater degree than other continents. "Today, four large states of India – West Bengal, Tamil Nadu, Gujarat and Rajasthan – are headed by democratically elected women. The Speaker of the Lower House of Parliament in India is also a woman'', he added.

While speaking on economic growth Mr Modi said that India's rapid economic growth is also very distinct in Asia. India has never tried to gain in trade at the expense of its partners. India does not follow "beggar thy neighbour" macro-economic policies. India has never undervalued its exchange rate. India adds to world and Asian demand by running current account deficits. India is therefore good Asian and good global economic citizens, and a source of demand to our trading partners.

The PM said, "We all want Asia to succeed. I firmly believe that India can contribute to Asian prosperity and development by being economically strong. Amid global problems, I am happy to say that India is a haven of macro-economic stability and a beacon of hope, dynamism and opportunity. Madam Lagarde, you have referred to India as the "bright spot" in the global economy. I view this as a great privilege and, at the same time, a major responsibility."

On this occasion, the Union Finance Minister, Mr Arun Jaitley, and Ms. Christine Lagarde, Managing Director, International Monetary Fund (IMF) signed a Memorandum of Understanding to establish a capacity development center in the national capital.

Speaking on the occasion, Ms Lagarde said “I would like to thank Prime Minister Modi, Finance Minister Jaitley and the Indian Government for offering to host the center and for their substantial financial commitment. This will be the First center that fully integrates training and technical assistance and is a model for our future capacity development work. I would also like to express my appreciation to the other member countries for joining with India, the IMF, and partners like Australia and the Republic of Korea, in making this exciting initiative happen.”

The South Asia Regional Training and Technical Assistance Center (SARTTAC) is expected to become the focal point for planning, coordinating, and implementing the IMF's capacity development activities in the region on a wide range of areas, including macroeconomic and fiscal management, monetary operations, financial sector regulation and supervision, and macroeconomic statistics. The Center will help address existing training needs and respond to the demand for IMF training in India, Bangladesh, Bhutan, Maldives, Nepal, and Sri Lanka, while bringing the region's training volume on par with those of other regions.

SARTTAC will offer courses and seminars for policymakers and other government agencies from the six aforementioned countries. It will build upon the IMF's in-depth experience with capacity development by drawing on the experiences of the IMF's Regional Technical Assistance Centers and Regional Training Centers, which have a proven track record of delivering technical assistance on economic institution building.

Funding will come from contributions by Regional Member countries and Development Partners. The Australian Agency for International Development, the Republic of Korea and India have pledged financial support for the said Center.