PM Modi proposes 'Global Development Compact' for growth of developing countries

Prime Minister Narendra Modi on Saturday proposed the creation of a human-centric "Global Development Compact" for the Global South to facilitate trade, technology sharing and concessional financing based on India's growth journey and in line with the priorities of the developing countries.

The needy countries will not be burdened with debt in the name of development finance, Modi said, announcing the 'Compact' at the third India-hosted virtual Voice of the Global South Summit, amid concerns over many countries falling into the Chinese 'debt trap' under Beijing's Belt and Road Initiative (BRI).

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The prime minister also urged the Global South to work unitedly in confronting food and energy security crises and the challenge of terrorism and extremism.

India hosted the third edition of the summit in sync with its commitment and priorities for the Global South or the developing countries.

The 'Global Development Compact' will be inspired by the development priorities set by the countries of the Global South, Modi said.

"I would like to propose a comprehensive "Global Development Compact" on behalf of India. The foundation of this Compact will be based on India's development journey and experiences of development partnership," he said at the closing session of the Summit.

"It will be human-centric and multi-dimensional for development and will promote a multi-sectoral approach. It will not burden the needy countries with debt in the name of development finance," Modi said.

The prime minister said the 'Compact' will help in the balanced and sustainable development of partner countries.

"Under this Compact we will focus on trade for development, capacity building for sustainable growth, technology sharing, project-specific concessional finance and grants.

"To strengthen trade promotion activities, India will start a special fund of $2.5 million. Training will be provided in trade policy and trade negotiation for capacity building," he said.

A fund of $1 million will be provided for this, Modi said at the closing session of the summit.