Coordinate policies against protectionism: India to G20

NEW DELHI: At a time when states in the US are embracing policies that reek of protectionism, India today asked a grouping developed and developing economies to act towards keeping trade open and ensure financial stability.

"The immediate spheres of such coordination (between G20 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 Pranab Mukherjee said at a financial crisis conference here.

He further said that G20 will need to coordinate 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 USD 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 G20 countries would meet next month, which will be followed by the fifth G-20 Summit of heads of states on November 11 and 12 in South Korea.

G20 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 crises, 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.