Protectionism delays recovery and deepens recession: Anand Sharma Urges nations to remain committed to open markets

The Union Minister for Commerce & Industry Shri Anand Sharma has urged the developed nations to remain committed to open markets and zealously guard against protectionism. Speaking at the 21st NASSCOM India Leadership Forum 2013 in Mumbai on Wednesday, Shri Sharma said, “I have in all my interactions with leaders of the developed world argued for freer and more open markets, which allow easier movements of professionals.” He observed that historically, the countries tend to look inwards, when faced with recessionary trends and said “this is not the right approach. On the contrary, protectionism becomes counterproductive, delaying recovery and deepening recession.”

Quoting from the study by Prof. Salinger of the Tuck School of Business, which analysed the practices of 2500 American MNCs, Shri Sharma said, empirical evidence suggested that for every job outsourced to India, nearly two new jobs were generated in the US. “Let us remember that just as America has off-shored some of its work to India, Indian companies are outsourcing activities to American companies, including software development” he added.

The Minister said that the Indian software professionals add to competitive strengths of various economies in the world, improving efficiencies and driving the process of change. “Erecting artificial barriers will only end up hurting economies and not supporting the cause of the domestic industry” he said.

IT industry driving India’s economic growth

Speaking about the Indian IT industry, Shri Anand Sharma observed that the information technology has been at the heart of technology revolution in India and has been the single most enabling factor in powering India’s economic growth. He recalled, how late Rajiv Gandhi, who laid the foundation for the IT industry by establishing technology missions, was ridiculed and criticized by all and sundry, and how all of them have been proven wrong today. Re-emphasising the government support for the IT and ITES sector, Shri Sharma said he is optimistic of the sector contributing US $ 175 billion by 2020 and generating 10 million direct jobs.

During 2012-13, the Indian IT and ITES industry exports reached $ 75.8 billion and the provided direct employment to 3 million people.

NASSCOM Social Innovation Honours presented

Shri Sharma and Maharashtra Chief Minister Prithviraj Chavan also presented NASSCOM 2013 Social Innovation Honours to 8 unique achievers for their contribution towards bridging the digital divide. Technology innovations that received the honours included, Saksham Scholarship Management Programme by National Informatics Centre, Lucknow aimed at eliminating corruption in scholarship distribution, easy to use mobile telephony based money transfer scheme of Yes Bank, home-link network of Don Bosco Foundation for tracking missing children, mobile based crop estimation technology, Birla Institute of Technology, Mesra’s (Jharkhand) technology innovation for teaching dyslexic children and the women in distress mobile app called Stipator. UP’s IVRS based Mid-Day Meal delivery tracking programme received the UNICEF honours.

The social innovation awardees were selected by an eminent jury, headed by former TCS CEO Mr. S Rama Durai.

MD/DS/RK

(Release ID :92196)