Kamal Nath optimistic on India's growth

Union Minister of Commerce and Industry Kamal Nath on Friday said that India’s path of recovery would be faster than any other country despite the ongoing global recession. He was addressing at the World Economic Forum in Davos, Switzerland.

Remaining optimistic for a 7-7.5% growth rate in the next fiscal beginning from April, he said that India’s continuous liberalisation policy could play a role in stimulating growth, saving jobs and enhancing living standards.

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Addressing a session on ‘Enabling Trade: Threats & Opportunities’ the minister said: “Governments must pursue domestic policies that allow their citizens to thrive in the global economy. The solution to global competition is improved competitiveness, not isolation.”

He suggested the participant countries to strengthen the health and education of their citizens and build necessary trade-related infrastructure.

Here, Nath observed that the global economy can be restored by following international trade rules, making transparent markets, honouring a unique and standard baseline for international labour and environmental standards, avoiding misuse of technical standards, allowing trade subsidies, respecting the dispute and resolving decision of World Trade Organisation (WTO).

Nath suggested that comprehensive multilateral, regional and bilateral trade agreements were vital for stimulating such liberalisation in the past and should be continued further.

Commenting upon the threat of rising protectionism, Minister stated, “These protectionist measures could take the shape of erection of illegitimate trade barriers whereby Members prop up barriers (both tariff and non tariff) to free trade with a view to protecting their domestic industry.”

Security concerns may also emerge as threats to free flow of goods & services, he added.

Kamal warned that the rising threat of security concern might tempt to support domestic jobs and incomes by diverting demand from abroad with export subsidies, tariffs and cheaper currencies.