Wednesday, December 9, 2009

Manufacturing to play key role in ensuring equitable economic growth – India raises voice against protectionism and calls for transfer of technology to promote green industrial growth

INDIA'S STATEMENT AT UNIDO GENERAL CONFERENCE
  
India has said that the manufacturing sector has a key role to play in ensuring equitable economic growth and called for effective transfer of technology from the developed to the developing world in order to accelerate green industrial growth. In a National Statement delivered on behalf of India at the General Conference of the United Nations Industrial Development Organisation (UNIDO) in Vienna today, Ms. Anjali Prasad, Joint Secretary, Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, has said: “The strengthening of the multilateral trading system and enlarging its scope has occupied considerable time and attention. There has been a spate of free trade agreements. But the question often asked is whether these have delivered development, reduced poverty and raised living standards of the world's poor and the vulnerable. Trade liberalisation could make the rich richer and the poor poorer, if not backed up by a strong sectoral response primarily in manufacturing industry and in services, agriculture and natural resources. It is here that the role of organisations like UNIDO becomes critical for handholding and capacity building. The global economic crisis has brought manufacturing industry at centrestage and has underscored its importance in sustainable economic growth”.

The statement underlined the significant contribution that manufacturing, including small and medium enterprises, has made to India's continuing robust growth and cautioned against protectionism. It welcomed the point made by UNIDO in its brief on current industrial development issues that a disturbing factor in the response to the economic slowdown is increasing protectionism and that it is high time for countries to strengthen trade rules to control protectionist tendencies. India believes that protectionism simply does not work, and has amply demonstrated its commitment to open trade by refraining from resorting to protectionist measures despite the slowdown in exports, the statement added.

On greening of industries, the statement drew attention to India's National Action Plan for Climate Change whose guiding principle is to protect the poor and vulnerable sections of society through an inclusive and sustainable development strategy, sensitive to climate change. “India believes that technology and its diffusion will be a key element in meeting the challenge of climate change. Developing countries need technology solutions that are appropriate, affordable and effective and they have to be backed by appropriate financial arrangements to facilitate technology transfers”, the statement said.

The UNIDO General Conference, 13th session, is being held in Vienna from 7 to 11 December 2009 with the twin thematic focus on the impact of the global economic slowdown on manufacturing and greening industry for global recovery and growth. .

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