Brasilia, April 16: Cautioning the world that global economic recovery is still fragile, India today said the cross-border capital flows should contribute to growth and not speculation.
“The financial sector and international capital flows should contribute to economic growth rather than encourage speculation and volatility in the international system,” Prime Minister Manmohan Singh said at the plenary session of the IBSA (India-Brazil-South Africa) Summit here.
Singh said the focus should be on greater investments in infrastructure, human capital and education.
“The critical phase of the global economic crisis is behind us, but the process of recovery is still fragile and uneven. We have to ensure that we do not repeat the mistakes of the past,” he said.
The Prime Minister presented a similar view at the BRIC (Brazil-India-Russia-China) Summit, held here on the same day.
–Agencies