Signs of increasing retreat from globalisation: FM Arun Jaitley

NEW DELHI: With pressures for protectionism building up in several parts of the world, there are "signs of increasing retreat from globalisation of goods, services and people", Finance Minister Arun Jaitley said today.

His comments come at a time when the new US administration, under President Donald Trump, is taking a number of steps to clamp down visas and even outsourcing, unnerving the export-oriented Indian IT firms.

Bills are also being introduced that can potentially curb the movement of skilled workers and increase labour costs.

"In several parts of the world, there are signs of increasing retreat from globalisation of goods, services and people as pressures for protectionism are building up," Jaitley said in his Budget speech.

He added that these developments have the potential to affect exports from a number of emerging economies, including India.

"Amidst all these developments, India stands out as a bright spot in the world economic landscape," he said, exuding confidence in the country's economy.

Indian IT firms face the risk of higher operational costs and shortage of skilled workers with the proposed overhaul of popular H-1B visa regime under President Trump.

This had led to a sharp slide in tech stocks yesterday and prompted India to convey its concerns to the US.

Besides, a US legislation has also been introduced that proposes more than doubling of the minimum wages of H-1B visa holders to USD 130,000, which would raise headcount expenses for visa-dependent IT firms and hit the sector's profitability.

Industry body Nasscom had conceded that the Lofgren Bill contains provisions that may prove "challenging" for the sector. It plans to take a delegation to the US this month to meet the new administration on this issue.

Such protectionist stance by the US -- which accounts for over half of the industry's export revenues -- could spell more trouble for firms like TCS and Infosys that are already facing strong headwinds from currency fluctuation and cautious client spending.

Joining the chorus against US' increasing protectionist stance, global tech titans like Google CEO Sundar Pichai, Microsoft chief Satya Nadella, Apple's Tim Cook and others have already gone public with their views.