Singh demands "orderly exit" from global easing policies Manmohan Singh, Indian prime minister, on Wednesday urged the developed world to help emerging markets by managing an "orderly exit" from the monetary easing policies that have flooded the world with liquidity since the 2008 financial crisis. In a statement ahead of the opening of Thursday's G20 summit of major economies in St Petersburg, Mr Singh said he would emphasise "the need for an orderly exit from the unconventional monetary policies being pursed by the developed world for the last few years, so as to avoid damaging the growth prospects of the developing world." The currencies of India and other emerging markets, including Brazil, Indonesia and Turkey, have fallen sharply as international investors shift capital to newly attractive US assets ahead of the anticipated "taper" of the US Federal Reserve's programme of quantitative easing through the buying of bonds. "Though there are encouraging signs of growth in industrialised countries, there is also a slowdown in emerging economies, which are facing the adverse impact of significant capital outflows," Mr Singh said. He joins a chorus of demands from governments in Asia, Africa and South America taken aback by the sudden loss of interest in their markets as the Fed ponders its next move. Chatib Basri, Indonesian finance minister, called for more clarity from the US about its monetary plans. "We are living in an interdependent world, that's why this issue needs to be discussed in a better way," he told the FT. I don't think any country in the world has enough clear information about the plan for [US] quantitative easing. Guido Mantega, Brazil's finance minister, complained that the Fed was causing "turbulence" in financial markets and urged it to ensure that the withdrawal of monetary stimulus was done carefully to avoid damaging other countries. Early on Wednesday morning the rupee fell sharply to Rs68.82 per dollar, close to last week's record low of Rs68.85, although it later recovered. India is suffering not only from concerns about US monetary policy but also a loss of confidence in the government's ability to reform the domestic economy. Mr Singh said his country had taken steps to stabilise the rupee and "create a more investor-friendly environment," but economic growth has slowed sharply and by some estimates will grow by only about 4 per cent this year, less than half the level of three years ago. Rajeev Malik, the CLSA economist, has called India "a laughing stock within the international investment community" and said on Wednesday that the government would need strong political will to meet its central budget deficit target of 4.8 per cent of gross domestic product for the current fiscal year. That would mean more spending cuts and a reduction in the subsidy for diesel through a price increase that could be imposed as soon as this weekend, he said.