(MENAFN- The Peninsula) The G20 Summit concluded here yesterday with its leaders endorsing India's concerns over black money, while promising a new global transparency standard that will modernise international tax rules and allow automatic exchange of related information between governments to curb illicit outflow of money estimated at over $1 trillion annually.
India, being represented at the summit by Prime Minister Narendra Modi, immediately called this development an unprecedented success, and said the next step will be the delivery of an action plan, along with the Organisation of Economic Cooperation and Development (OECD). The two forums represent 44 countries and 90 percent of the world economy.
"We are taking actions to ensure the fairness of the international tax system and to secure countries' revenue bases. Profits should be taxed where economic activities deriving the profits are performed and where value is created," the G20 leaders said in a joint communique at the end of the eighth summit, promising to finalise work by end-2015.
This was precisely what Prime Minister Narendra Modi had specifically said and sought during a session on "Delivering Global Economic Resilience" on the second day of the summit in this west Australian city, while also wanting systems that will help countries in getting back the ill-gotten monies stashed away abroad.
"At this Summit, G20 Leaders have endorsed a new global transparency standard that will leave no place for tax cheats to hide. More than 90 jurisdictions will begin automatic exchange of tax information, using a common reporting standard by 2017 or 2018," said Australian Prime Minister Tony Abbot, the summit chair and host.
India has no official estimates of illegal money stashed away overseas, but the unofficial ones range from $466bn to $1.4 trillion. Aaccording to Indian interlocutors, such strong words on illicit money and imposition of curbs in the communique would not have been possible without India's intervention, since the original draft did not contain a language that was satisfactory for India.
"India scores at G20," the external affairs ministry spokesperson Syed Akbaruddin tweeted. He and Minister Prabhu even termed the outcome "unprecedented success".
"The G0 communique addressed concerns going beyond G20, developmental issues - employment, India's prime concern, was a central issues of discussion," Prabhu told reporters at a post-summit briefing here. The tax and related black money issue apart, several other issues which New Delhi pursued vigorously in Brisbane found echo at the G20 Summit - reducing the cost of remittances from abroad, of which India is the largest beneficiary at $70bn annually, collaborations on energy, infrastructure financing, inclusive growth, job creation and energy security. The communique also specifically welcomed the breakthrough between India and the United States at the World Trade Organisation (WTO) and saw this as paving the way for a pact that will help ease the processes involved in global commerce, and move forward in addressing the concerns of developing countries on food security.
The Prime Minister Modi had a first-time bilateral meeting with Saudi Arabia's Crown Prince and Deputy Prime Minister Salman bin Abdulaziz Al Saud who congratulated him as prime minister of a friendly country.
During the talks held on the sidelines of the G20 summit here, the Saudi crown prince said his country was ready to cooperate with India in all sectors. "He wished the prime minister well, and said we are ready to cooperate on a variety of issues. Crown Prince Salman said they are ready to cooperate on all aspects and to take the relationship forward," said external affairs ministry spokesperson Syed Akbaruddin at a briefing here. He said delegations from Saudi Arabia were coming to India "on specific areas".
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