Prime Minister Manmohan Singh today asked developed nations to shun protectionism in trade and free investment flows as he left for London for a meeting of leaders from world's 20 influential economies to find a way out of the global downturn.
The G-20 Summit starting April 2 is expected to build consensus against protectionism, even as a World Bank report named India and China as the countries that are most active in initiating anti-dumping measures against imports.
In a statement before leaving for London, Singh said there was need to ensure adequate flows of finances and resources to developing countries to offset effects of the global slowdown.
"It is important and necessary for the Summit to take credible decisions which will help to halt and reverse the current slowdown and instill a sense of confidence in the global economy," he said.
There is need for "coordinated fiscal stimulus by major economies to offset the decline in private demand, agreement on a set of principles to plug loopholes and weaknesses in the supervisory and regulatory arrangements...", Singh said.
On protectionism, US President Barack Obama, had in an interview to Financial Times yesterday, said: "I have sent a very clear signal that now is not that time to offer hints of protectionism and I will continue to discourage efforts to close the US market."
The Prime Minister asked developed countries to steer clear of protectionism and work towards restructuring and reforming the international financial institutions.
This is Singh's first trip abroad after the coronary bypass surgery he underwent on January 24.
He said a considerable amount of preparation has been done ahead of the Summit. These preparations include agreement on a set of principles to plug loopholes and weaknesses in the supervisory and regulatory arrangements for the financial institutions.
Obama had told FT: "We need stimulus and we need regulation. We need to deal with the problems right in front of us and we also need to make sure we are taking steps to prevent these types of breakdowns from happening again."
"It is an unfortunate reality that the effects of the slowdown have spread across the world, and developing countries, particularly those in Africa, are facing its worst consequences," Singh said.
The Prime Minister would hold bilateral meetings with British Prime Minister Gordon Brown, the host of the G-20 meeting, and Obama.
