Protectionism to hurt global economy: FM
Finance minister Arun Jaitley on Saturday said the attempt to change the discourse from opening up and focusing on competitive advantage among economies to increased protectionism will only hurt the global economy and welfare of people.
Speaking at the plenary meeting of the development committee of the World Bank and the International Monetary Fund and Restricted Session of the International Monetary and Finance Committee (IMFC) in Washington DC, Jaitley said: We need to bond together and renew our compact to protect the world from falling into spiral of slow economic growth, rising inequality and irreversibly altered climate, conflict and fragility.
India has expressed concern over rising trend of developed countries like the US, Australia, New Zealand putting curbs on movement of skilled professionals which is likely to hurt Indian information technology companies.
Jaitley said the confidence in global recovery remains weak owing to the risks associated with the future course of economic policies and monetary policy stance of AEs; resurgence of commodity price pressures; and the increasing recourse to protectionism.
During his visit to Washington D.C., Jaitley held a bilateral meeting with his US counterpart and the US Treasury Secretary, Steven Mnuchin. “Jaitley raised the issue of H1B visas for skilled professionals from India and highlighted the contribution which Indian companies and professionals are making to US economy. Issues related to terror funding were also discussed and the US Treasury Secretary appreciated the role of India in this regard, including Indo-US cooperation in FATF (Financial Action Task Force),” a finance ministry statement said.
Speaking at the IMFC, Jaitley said the positive momentum in global growth is expected to strengthen in 2017 based on gradual improvement in economic conditions in advanced economies, particularly the US, as well as due to the pick-up in growth in some large emerging markets.
“In these circumstances, it is imperative to fortify efforts to support global recovery by committing ourselves to growth friendly policies and ensuring free and fair trade practices as called for by G-20 leaders at the Hangzhou Summit in September last year. Advanced economies have an important role in stimulating global demand with supportive fiscal and monetary policies and eschewing protectionism,” Jaitley said.