Prime Minister Manmohan Singh is expected to ask nations to avoid competitive devaluations and fresh spurt in protectionism at the G-20 heads of state meeting on Friday.
The comments, say agency reports is contained in Singh?s speech at one of the sessions. However at the time of going to press, government sources said the final text of the speech could be modified, as several meetings including that of the sherpas was still on.
?Exchanged rate flexibility is an important instrument for advancing a sustainable current account position and our policies must reflect this consideration,? the draft speech, the speech, seen by Reuters, says.
It also says, ?Advanced deficit countries must follow policies of fiscal consolidation consistent with their individual circumstances so as to ensure debt sustainability over the medium term,? ?Credible fiscal sustainability over the medium term is probably more important than front-loaded fiscal correction.?
Singh will also call for such fiscal correction to be accompanied by ?credible reforms in products and the labour market which would increase efficiency and competitiveness?.