Protectionism to complicate global financial crisis: Mukherjee

New Delhi, Mar 3 (PTI) As the US moves towards
eliminating tax benefits for American firms outsourcing jobs
to foreign countries, India Tuesday said protectionist steps
by developed nations would complicate the global financial
crisis.

"Developed countries should not resort to protectionism
to overcome this (financial) crisis... any sort of
protectionism will complicate the problem instead of resolving
it," Finance Minister Pranab Mukherjee said here.

He said during the time of crisis developed economies
must ensure that there is no hindrance in the flow of
investments to the developing countries.

Mukherjee said Prime Minister Manmohan Singh had
articulated India's views during bilateral meetings with world
leaders on the margins of the ASEM summit in Beijing last year
and also at the G-20 meeting in New York.

The US on November 15, 2008, hosted the first G-20
economic conference, which deliberated the ways to overcome
the financial crisis. The next G20 summit will be held on
April 2 in London.

On February 26, US President Barack Obama in his maiden
budget speech said his administration would do away with tax
breaks for firms outsourcing jobs to overseas destinations,
including India. At the same time, the US administration would
be providing tax relief to 95 percent of American working
families. PTI SKU
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