Search the Internet          Tips  Sites: Finance, Investment

Sinha blasts developed world for 'discrimination'

India, on Thursday, lambasted industrialised nations for not providing a level-playing field to developing countries in globalisation, which in turn had put the Third World into a lot of difficulties.

"Despite the talks of a level-playing field in global integration, the South continues to be discriminated against through various trade barriers," Sinha said shortly before his departure to Davos early on Thursday, as the head of a 40-member Indian delegation to the World Economic Forum (WEF).

"We would strongly emphasise upon the developing world's demand for being treated as an equal partner in the process of globalisation," he said.

Sinha said that at the week-long annual WEF, he would focus on addressing the difficulties being faced by the developing countries in adapting to globalisation and the ways in which these problems could be sorted out.

"We will be emphasising upon the importance of developed countries' cooperation in this regard," he said. Sinha is accompanied by a high-power business delegation from the Confederation of Indian Industries (CII), in a bid to showcase India as an attractive foreign direct investment destination.

The finance minister discounted criticism by industrialised nations that India had not done much to eradicate poverty. "Unfortunately, the international community seems to be keen on highlighting only the poverty of India and not its *achievements," Sinha said.

"Hardly any mention is made of India's strong democratic institutions, quality of governance, the thriving and expanding farm sector and other major accomplishments in the areas of social and human development," he added.

He said that the major objective of reforms in the country was alleviation of poverty and unemployment through generation of sustained high growth, adding that Indian reforms have been successful in this regard.

On encouraging export-led growth in the country, Sinha said that the country was now following an "outward-oriented, liberal trade regime." Several specific measures have been taken on boosting the growth of exports in recent times, he said, adding that exports have responded well and are growing at 20.6 per cent in the current year.

"Promotion of exports is not an isolated issue and is part of the overall long-term perspective policy for India's external sector," Sinha said.

Asked what steps he proposed to take to attract foreign direct investment (FDI), Sinha said FDI inflows have been maintaining a "stable" trend and "more efforts are being made for further improving the policy."

India had an enabling policy for attracting investment from both direct investors as well as foreign institutional investors. During April to October 2000, aggregate FDI flows have been higher at $1.62 billion than $1.2 billion in the corresponding period in 1999.

India's share in the total FDI inflows for developing countries had increased substantially during the nineties. Recent studies have indicated that India offers the highest rate of return and profitability on FDI in the world.

He said that second generation reforms were being gradually implemented in the country and the key areas are passing of Fiscal Responsibility bill, amending outdated legislations pertaining to labour and industry, financial and banking reforms and foreign investment.

"The objective of the new phase of reforms is to enhance the tempo of sustained growth for ameliorating poverty and unemployment in the medium and long terms," Sinha said.

Tell us what you think of this report