India calls for strong G20 message

Against protectionism:

INDIA: Indian Prime Minister Manmohan Singh called Wednesday for a “strong message” against protectionism from world leaders as he set out for the G20 summit of wealthy and emerging nations.

Singh also said he would press for “a return to trend growth” and stabilisation of the financial sectors in developed economies steps he said are vital to trade, capital inflows and investment in emerging nations.

India would “like to see a strong message to emerge from Pittsburgh against protectionism in all its forms, whether trade in goods, services, investment or financial flows,” Singh said in a message released as he left for the US city.

The global economy has shown “distinct improvement” since the global financial crisis erupted but “we are still not out of woods,” he added in the statement.

India with its mainly domestically focused economy approaches the G20 summit “with a sense of confidence,” he said.

“Our growth is primarily driven by domestic demand, our savings rate is robust and the external sector has exhibited resilience,” he said.

Capital cash flows have also started picking up and India is an “attractive investment destination,” he said.

India forecasts “six percent plus” growth this year, lower than the 6.7 percent the country logged last year, and sharply down from the annual nine percent levels it clocked during the three previous years.

But private economists expect India’s growth to start gaining steam next year.

Singh also said there was “a need to carry (on) the process of governance reform of international financial institutions further to give greater voice and representation to under-represented countries.”

Leaders of the Group of 20 leading world economies are to meet in Pittsburgh on Thursday and Friday for a summit aimed at coordinating efforts to combat the global economic crisis.

NEW DELHI, Wednesday, AFP