In helping countries of Global South, will not put needy under debt: PM Modi

Tribune News Service

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New Delhi, August 17

Prime Minister Narendra Modi on Saturday wooed the countries of Global South by promising to come up with a development plan, and in an apparent dig at China’s skewed financing model, added that “we will not put needy countries under the burden of debt”.

The PM said a Social Impact Fund had been created to accelerate digital public infrastructure (DPI) and India would make an initial contribution of $25 million (Rs 20,700 crore) to it. The funds will be used to accelerate the implementation of digital public infrastructure that would include enabling of UPI payments and associated works.

Modi was addressing the 3rd Global South Summit conducted virtually today and went on propose what he termed as a comprehensive ‘Global Development Compact’.

“The foundation of this compact will be based on India’s development journey and will be inspired by the development priorities set by the countries of Global South,” he added.

Taking on the Chinese model, he said India’s plan “will not put needy countries under the burden of debt in the name of development finance”.

Later in the evening, External Affairs Minister S Jaishankar said: “Several countries had mentioned about rising debt”. On being asked if some country had named China for the debt, he said: “No specific name was mentioned.”

In all, 123 countries participated in the summit, including heads of state of 21 countries and foreign ministers of 34 nations. China and Pakistan were not invited, Jaishankar said.

At the summit, Modi said the focus would be on trade for development, capacity building for sustainable growth, technology sharing, project specific concessional finance and grants. Later, sources said these grants would be for specific projects for the countries who seek these.

To boost promotion activities, India will launch a special fund of $2.5 million. Training will be provided in trade policy and trade negotiation for capacity building. A fund of $1 million will be provided for this.

Modi also mentioned the setting up of health-related infrastructure in African countries and said “friendship for health” was the mission.

Representatives of Bangladesh, Belarus, Bhutan, Chile, El Salvador, Ethiopia, Fiji, Grenada, Guyana, Laos, Marshall Islands, Mauritius, Mongolia, Nepal, Oman, Sri Lanka, Suriname, Tajikistan, Timor Leste, Uruguay and Vietnam were at the leaders’ session with the PM.

China, Pakistan not invited

External Affairs Minister S Jaishankar said 123 countries participated in the summit, including heads of state of 21 countries and foreign ministers of 34 nations. China and Pakistan were not invited, he added.

Focus to be on trade

Prime Minister Narendra Modi said the focus would be on trade for development, capacity building for sustainable growth, technology sharing, project specific concessional finance and grants.