Power Minister Piyush Goyal today said developed economies are freely using non-tariff barriers and looking at problems of emerging economies with unequal solutions.
“When it comes to trade protectionism, non-tariff barriers are freely used by almost every developed economy but it won’t come under umbrella of any WTO or any constraints,” Goyal said while speaking at the fourth Annual Summit of the Growth Net.
He said that India has hardly any restriction when it comes to foreign investments and it is an open economy barring 4-5 sensitive sectors.
“There may be 4-5 sectors if at all where there certain restrictions you will find in most developed of economies. Equally harsh, if not worse. Trade protectionism in then Western world is probably far more than what is done in India,” he said.
The minister said that with kind of unequal practice being followed by developed economies, countries like India would be forced to look at learning that they can get from the West “which may not be necessarily be good for world economy” but may become compulsion for countries.
“I failed to understand from where this great thinking comes from. Where what I do is right but if you do the same thing that’s not right. I can protect my boundaries to protect people … but I want to support to your economy, you should allow me free access, free capital flow,” Goyal said.
He said that developed economies are providing unequal solutions to sensitive problems of emerging economies and that needs to be corrected to address problem of terrorism and climate change.
“After all where does terrorism originate from. We all recognise terrorism does not has any religion. Terrorism does not has origins necessarily in one country or few countries alone. World is grappling with terrorism. If you go into root cause analysis of terrorism it will come out of economic deprivation,” Goyal said.
He said that even in India there are 150 districts which are effected by Maoists and attributed their activity to economic deprivation.
Railway Minister Suresh Prabhu at the event called for investment in infrastructure as it is one sector that is going to take the world economy to next level.
“When you invest in infrastructure, the nature of infrastructure is such that where infrastructure goes that geography will benefited the most. That is one way to look at it.
“Actually the value chain, the supply chain which is involved in making infrastructure in a particular geography will have huge potential to create demand of a very different magnitude in different parts of the world,” Prabhu said.
He said that India needs USD 250 billion investment in the infrastructure which needs financing from right source.
“Banks cannot have normal household saving finance infrastructure. We are trying to finance long-term infrastructure needs with short term financing source. That is not going to happen,” Prabhu said.
He said that countries across the world need to sit on a round-table to discuss issues with investors and resolve it.
“Actually getting proper investors interest in policy making is very key to the success of policy itself.
Having realised that public investment in infrastructure will not suffice alone, we are going for public private partnership model,” Prabhu said.
He said that the best option available with the government to finance infrastructure is pension fund.
“Pension fund can be right source because that matches profile of infrastructure as well as the pension fund itself,” Prabhu said.