Protectionism gaining and Globalization losing its lustre, Indian PM tells economic forum

Published on : January 23, 2018 3:42 15




Indian Prime Minister Narendra Modi is leading a big government and business delegation at the summit in Davos, Switzerland, the first Indian prime minister do so in 21 years, aiming to showcase India as a fast-growing economic power and a potential driver of global growth.

Protectionism is gaining ground and globalization is losing its attractiveness,Modi told the World Economic Forum on Tuesday.

Modi added that India’s economy is expected to more than double and touch $5 trillion by 2025.The last time an Indian prime minister attended the Davos talks, India’s GDP was “little more than $400 billion and now two decades later it’s about six times that amount.”

He said his government was committed to boosting economic growth and reducing bureaucratic hurdles to doing business in India. Modi said his government was committed to making the economy attractive for investment.

However, he said the recent wave of trade protectionism, in which governments raise barriers to free trade between nations, is “worrisome.”Modi delivered the warning in a speech a day after U.S. President Donald Trump announced steep tariffs on imports of solar-energy components and large washing machines in a bid to help U.S. manufacturers.

Modi said “forces of protectionism are raising their heads against globalization.” Without directly mentioning Trump or the U.S., he said “the solution to this worrisome situation against globalization is not isolation.”

Modi added that the developed world needs to do more to help poorer countries adopt new technologies aimed at fighting the effects of climate change.