Prime Minister Narendra Modi said on Sunday that the debt crisis is a matter of great concern, especially for developing countries in the Global South. In a conversation with PTI, he added that India is looking at building consensus to evolve a tangible framework to help the debt-ridden low-income economies.

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"The debt crisis is indeed a matter of great concern for the world, especially developing countries. Citizens from different countries are keenly following the decisions being taken by governments in this regard. There are some appreciable results too," Modi said.

"First, countries that are going through a debt crisis or have gone through it, have begun to give greater importance to financial discipline," Modi said. "Second, others who have seen some countries facing tough times due to the debt crisis are conscious of avoiding the same missteps."

Last week, PM Modi said India's G20 presidency has placed a significant emphasis on addressing the global challenges posed by debt vulnerabilities.

"To accelerate global debt restructuring efforts, the Global Sovereign Debt Roundtable, a joint initiative of the IMF, World Bank and the G20 Presidency was launched earlier this year. This will strengthen communication among key stakeholders and facilitate effective debt treatment," he added.

However, China, considered to be the world's largest sovereign creditor, has been showing reluctance to certain proposals. Both the Asian giants have been locking horns in the Himalayas since May 2020.

The G20 finance ministers and Central Bank Governors have acknowledged a good progress in building consensus to evolve a tangible framework.

According to estimates, over 70 low-income countries are reeling under a collective debt burden of $326 billion.

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-With inputs from PTI

First Published:Sept 3, 2023 2:53 PM IST