Protectionist Tendency In US Counterproductive, Says IndiaBangalore: India on Saturday said 'protectionist tendency" in the United States would deepen recession and delay global economic recovery. "I feel protectionism tendency is unhealthy and negative, and lessons from the past make it abundantly
Bangalore: India on Saturday said 'protectionist tendency" in the United States would deepen recession and delay global economic recovery.
"I feel protectionism tendency is unhealthy and negative, and lessons from the past make it abundantly clear they end up deepening the recession, they do not help in recovery of economies", Union Commerce and Industry Minister Anand Sharma told reporters here.
Sharma was referring to Ohio state's ban on outsourcing of to overseas companies, and before that, the US government's decision to raise fees for H1B visas that would impact operations of the USD 50 billion strong Indian IT industry.
US President Barack Obama also said this week he would end tax-breaks for companies which "create jobs and profits in other countries".
Admitting that India does not have legal options against such US measures, he said the larger issue was of "approach and philosophy".
"Any mindset, which is isolatory and inward looking ends up hurting the economies and societies", he said.
Sharma termed protectionist measures in the US as "regressive and counter-productive". "As a leading economy of the world, the US has to have more confidence to engage the rest of the world".
'In my view, in testing times, it's important to step out and engage, to dismantle the existing barriers and not erect new ones", Sharma said, adding, protectionist measures always end up deepening recession and delay economic recoveries.
While countries have domestic compulsions, they have to honour international obligations and commitments.
Stating that US is a strategic partner of India, he said New Delhi wants to deepen and diversify bilateral engagement. "We have to positively contribute for the growth of our relationship and not undermine or weaken it in any manner". PTI