News APP

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  gplay

This article was first published 12 years ago
Home  » Business » Protectionism to hurt both US and India, warns Pranab

Protectionism to hurt both US and India, warns Pranab

By Himani Kumar
January 30, 2012 13:23 IST
Get Rediff News in your Inbox:

Worried over the adverse fallout of protectionism, Finance Minister Pranab Mukherjee on Monday said if the US stops outsourcing jobs to India, profitability of both the economies will be hurt.

"...if US stops outsourcing jobs from India to some extent profitability of the economies will be affected," Pranab told reporters in Chicago.

Speaking at the end of a two-day visit, he said that nations were free to adopt policies that suited their requirements, but the policies should not lead to protectionism.

Moreover, he stressed, the World Trade Organisation (WTO) too is working to free flow of goods and services across the globe.

US President Barack Obama had earlier said that the companies which provide jobs at home would get bigger tax breaks but those outsourcing work would have to pay more.

Pranab, however, pitched for uninterrupted flow of goods and services and removal of tariff and non-tariff barriers arguing that these measures have yielded desired results for all.

"Protectionism ultimately does not help the country that resorts to it", he said, adding "there is merit in giving up protectionism and I do hope the countries will not resort to it."

Pranab attributed the high growth in the past to liberalisation of international trade by reduction in tariffs.

Click here for Rediff Realtime News on outsourcing!

Get Rediff News in your Inbox:
Himani Kumar in Chicago
Source: PTI© Copyright 2024 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.
 

Moneywiz Live!