‘No global approach to capital controls’

‘No global approach to capital controls’

Paris: India is against any global approach to capital controls and thinks it is up to individual countries to manage their inflows, finance minister Pranab Mukherjee said on Friday.

“Our position is that we do not want any arbitrary mechanism to discourage capital inflows. We have stated that this decision should be left to the discretion of individual countries," Mukherjee told reporters as policymakers gathered for G20 talks on global economic imbalances.

Asia’s third-largest economy needs foreign inflows to bridge its widening current account deficit, expected to be around 3% of gross domestic product (GDP) in the 2010-11 fiscal year to end-March 2011.

Policymakers are confident India can easily finance the gap