Protectionism will hurt both US, India: Pranab
Posted on: 05:30 PM IST Jan 30, 2012
Chicago: Worried over the adverse fallout of protectionism, Finance Minister Pranab Mukherjee said on Monday 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," Mukherjee 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.
Mukherjee, 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."
Mukherjee attributed the high growth in the past to liberalisation of international trade by reduction in tariffs.