ID :
53219
Tue, 03/31/2009 - 23:13
Auther :

India against protectionism, for free investment flows

New Delhi, Mar 31 (PTI) Prime Minister Manmohan Singh
Tuesday asked developed nations to shun protectionism in trade
and free investment flows as he left for London for a meeting
of leaders from world's 20 influential economies to find a way
out of the global downturn.

The G-20 Summit starting April 2 is expected to build
consensus against protectionism, even as a World Bank report
named India and China as the countries that are most active in
initiating anti-dumping measures against imports.

In a statement before leaving for London, Singh said
there was need to ensure adequate flows of finances and
resources to developing countries to offset effects of the
global slowdown.

"It is important and necessary for the Summit to take
credible decisions which will help to halt and reverse the
current slowdown and instill a sense of confidence in the
global economy," he said.

There is need for "coordinated fiscal stimulus by major
economies to offset the decline in private demand, agreement
on a set of principles to plug loopholes and weaknesses in the
supervisory and regulatory arrangements...", Singh said.

On protectionism, US President Barack Obama, had in an
interview to Financial Times yesterday, said: "I have sent a
very clear signal that now is not that time to offer hints of
protectionism and I will continue to discourage efforts to
close the US market."

The Prime Minister asked developed countries to steer
clear of protectionism and work towards restructuring and
reforming the international financial institutions.

This is Singh's first trip abroad after the coronary
bypass surgery he underwent on January 24.

He said a considerable amount of preparation has been done
ahead of the Summit. These preparations include agreement on a
set of principles to plug loopholes and weaknesses in the
supervisory and regulatory arrangements for the financial
institutions.

Obama had told FT: "We need stimulus and we need
regulation. We need to deal with the problems right in front
of us and we also need to make sure we are taking steps to
prevent these types of breakdowns from happening again."

"It is an unfortunate reality that the effects of the
slowdown have spread across the world, and developing
countries, particularly those in Africa, are facing its worst
consequences," Singh said.

The Prime Minister would hold bilateral meetings with
British Prime Minister Gordon Brown, the host of the G-20
meeting, and Obama. PTI TEAM
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