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Open up markets, Sinha tells rich nations
By Sridhar Krishnaswami
The Israeli Foreign Minister, Shimon Peres, shakes hands with the Finance Minister, Yashwant Sinha, as the Andhra Pradesh Chief Minister, Chandrababu Naidu, (right) looks on at a reception hosted by the CII to the World Economic Forum delegates in New York on Saturday. - PTI
NEW YORK, FEB. 3. The Union Finance Minister, Yashwant Sinha, has said that the restrictive practices of the developed world are preventing Indian steel-makers from taking advantage of the global market.
Addressing a press conference at the Consulate-General of India here on Saturday, Mr. Sinha said he had not come looking for ``any assurances'' and pointed to the ``new and innovative'' methods of restricting steel imports from India. The anti-dumping levies on India had been made on ``specious'' grounds.
Participating in a panel discussion on the ``Global Economic Outlook'' at the World Economic Forum, now in session here, Mr. Sinha put forth the same arguments. The developed nations of the West, Europe and the United States faced sharp criticism over protectionism at the forum from other participants too.
Calling on the rich countries to open up their markets, Mr. Sinha gave specific examples of the European countries and the U.S. restricting the import of Indian steel. ``Just because manufacturers in India are more competitive, they have been prevented from taking advantage of the markets in the developed nations. That has resulted in a surplus capacity,'' he said, adding that it would be beneficial for both India and the U.S. if Washington lifted the restrictive trade practices against the Indian steel. As far as India was concerned, better market access, capital flows, Overseas Development Assistance and terrorism were some of the main issues of concern, he added.
During a question-and-answer session, Mr. Sinha said fiscal deficit was a problem which India had not been able to solve as ``yet''; but, he was quick to point out that fiscal deficit was not on account of excessive expenditure but due to shortfall in revenue. Unproductive expenses had been kept under check, but for some time now, there had been a shortfall in revenue.
Asked to comment on the depreciation of the rupee against the dollar and the impact of this on the growth rate, Mr. Sinha said it would not have any appreciable effect. With the day-to-day management in the hands of the Reserve Bank of India, the bottomline was to ensure that there was no undue volatility on the exchange rate. The market forces would determine this.
Asked about the ``lessons'' from Enron as it pertained to India, Mr. Sinha referred to one of the sessions, at the five- day WEF session, this morning, where a participant apparently pointed out that at the time of the East Asian Financial crisis, the U.S. was lecturing to the Asian countries on accounting standards and transparency. ``We have no right to lecture,'' the participant, Paul Krugman, is said to have remarked.
Mr. Sinha said that while the ``trend of modest defence spending will continue,'' India would not compromise with its security and whatever funding was required, it would be ``unhesitatingly provided.''
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