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Rich countries must open markets to poor: Sinha

Despite talk of the benefits of globalisation, rich countries have yet to fully open their markets to poor nations, Finance Minister, Yashwant Sinha said on Saturday.

Speaking on the sidelines of the World Economic Forum in New York, Sinha criticised rich countries for seeking "new and innovative methods" to bar exports from developing countries.

"We have been making the point that the liberalisation of international trade and better access for the exports of developing countries to the markets of industrialised countries is of great importance," Sinha told reporters.

A case in point is India's steel industry, which he said is "very competitive" but struggles against protectionism.

"Restrictive practices in Europe and in the US are largely responsible for restricting exports of steel from India," he said.

In 2000, the US approved a law allowing companies to receive a share of government duties on imports of foreign competitors charged with dumping goods below costs in US markets.

India, the European Union, Japan and other countries have challenged the law at the World Trade Organisation, which is expected to rule this year.

India sent a delegation of steel officials to the United States last month for discussions, Sinha said.

DEFICIT IS PROBLEMATIC, RUPEE IS NOT

Sinha said India's stubbornly large fiscal deficit remained a problem, but he said the sorry state of India's public finances resulted from falling revenues, rather than reckless spending.

He said India would continue to keep its spending in check, even after the Decemebr 13 suicide attacks on the Parliament and mounting tensions with neighboring Pakistan.

"I do not expect the defense Budget to be breached," Sinha said, but quickly added that India would not compromise its security.

Despite economic growth rates among the fastest in the world, India's deficit is heading for its bleakest levels in a decade. The government has said its budget deficit will exceed an ambitious target of 4.7 per cent of gross domestic product in the year ending in March.

But Sinha said he was not especially concerned by a recent slide in the Indian rupee. "I don't think it's having any impact on the growth rate," he said.

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