INDIAN PM DEFENDS HIS DECISION OF $10bn EU BAILOUT
If you are not aware, then this must be an important news to you that the Indian PM, Dr. Manmohan Singh recently announced a bailout for EU nations at the G-20 Summit at Mexico. The bailout is fine, but what came as a surprise was the amount of money being offered by the PM- a staggering $10bn !! Given the current economic condition of India and the dipping Indian Rupee against the dollar along with the country wide inflation, the announcement is certainly not going well with anyone in the India except the UPA.
People of India are more surprised than anyone, considering it is their tax money, which is not being utilized for their development but else where in a political move to maintain good relations with the EU Zone. The NDA led opposition also tried to massively oppose the Prime Minister’s move, but looks like Dr. Manmohan Singh is in no mood to give any second thoughts to his decision. Rejecting the criticism, PM said he didn’t see anything wrong in India’s $10 billion contribution to the IMF for its $430 billion bailout fund created to assist the debt-hit Euro Zone tackle its financial crisis.
Dr. Singh said- I don’t think there is anything wrong in our contributing to IMF. The contribution will be used only if needed and it will also continue to be part of India’s reserves. The PM said that before making any announcement he had a discussion among the BRICS leaders and all of them announced similar contributions. BRICS consists of India, China, Brazil, Russia and South Africa. The five-nation community as a whole had decided at the G-20 Summit to contribute $75 billion to shore up IMF’s finances to help tackle the Euro Zone debt-crisis.
Later, Dr. Manmohan Singh also mentioned that India has to play responsibly in handling International situations such as Euro Zone crisis in order to maintain good trade relations and business relations.