New Delhi: At a time when states in the US are embracing policies that reek of protectionism, India on Friday asked a grouping of developed and developing economies to act towards keeping trade open and ensure financial stability.
“The immediate spheres of such co-ordination (between G-20 member countries) are macroeconomic policies and exit strategies, pace of regulatory reforms to ensure financial stability without affecting prospects of growth... keep international trade open and avoiding protectionism,” finance minister Pranab Mukherjee said at a financial crisis conference here.
He further said that G-20 will need to co-ordinate policy actions in a manner that can ensure strong, sustainable and balanced growth.
The state of Ohio in the US earlier this month banned outsourcing of state IT contracts to foreign companies. The move came on the heels of Washington-’s decision to hike visa fee for H-1B and L1 categories. These moves are expected to hurt the $50 billion Indian IT market, which garners a major chunk of revenues from American companies.
The outsourcing ban by Ohio has come as a disappointment to India, and commerce minister Anand Sharma said on Tuesday that the move is “not welcome at all.”
Finance ministers of G-20 countries would meet in October, which will be followed by the fifth G-20 Summit of heads of states on 11 and 12 November in South Korea.
G-20 is a group of 20 countries, comprising both developed and developing nations including India.
Mukherjee said that as clearly indicated by the current global crisis, no country is insulated from global economy and the crisis is turning out to be much deeper and broader than expected.
“It began as financial crisis, which then became a general economic crisis, it is also becoming an employment crisis. As clearly indicated by the current crisis, no country is insulated and it is turning out to be much deeper and broader than expected,” he added.