Washington: With an aim to highlight and rectify flaws, top seven world’s largest economies, including India, will face a new surveillance system before they imperil growth under a deal agreed by group of 20 finance chiefs.

The new system outlined in a joint statement on Friday after a day of talks among G-20 finance officials will prod nations to take corrective actions when imbalances in such areas as foreign trade or government debt rise to excessive levels.

The agreement is a significant achievement that will maintain the momentum to revive the global economy and prevent future financial crises, French Finance Minister Christine Lagarde told reporters as France heads the G-20 this year.

“In the beginning, the monitoring process will focus on seven of the world's largest economies but would eventually be broadened to include all nations in the G-20,” she said.

Though Lagarde did not identify the seven nations, the group is widely expected to include India, the United States, China, Japan, Germany, France, and Britain.

Nations accounting for more than five per cent of the G-20's gross domestic product will be more rigorously studied given their "greater potential for spillover effects," the statement said.

The G-20 outlined four methods based on structural and statistical approaches that will be used to decide when indicators such as public debt and fiscal deficits and the external imbalance composed of the trade balance and net investment income flows and transfers, appear excessive.

A country identified as having persistently dangerous levels of two of the measures will be subjected to further study and may have remedies suggested.

The G-20 also agreed to strengthen coordination "to avoid disorderly movements and persistent exchange rate misalignments" and to establish a path to increasing the number of currency that comprise the IMF's Special Drawing Rights.

Unrest in the Middle East and Japan's natural disaster "have increased economic uncertainty and tensions in energy prices," it said, but there is "adequate spare capacity to meet global energy demand."

(Agencies)