20 Feb :In an apparent criticism of the protectionist measures built into the US government’s multi- billion corporate bailout package, India has said these were "worrying signs" from the world’s biggest economy.
"We are already witnessing worrying signs of protectionism in the world’s biggest economy. We need to argue against this trend at the international fora," External Affairs Minister Pranab Mukherjee said inaugurating the 42nd Indian Labour Conference at New Delhi on Friday.
He was apparently referring to Washington’s bar on firms receiving bailout money from hiring foreign workers if they are to replace Americans at work, though he did not make any direct mention.
Industry estimates suggest nearly 100,000 Indians were among the 163,000 that had applied for non-immigrant skilled workers visa (H1-B) in FY’09.
The US has capped the number of H1-B visas at 65,000 a year. The bailout-condition could affect Indian skilled workers.
In the wake of the global financial meltdown, Mukherjee said, "We will need to press for trade and aid flows to developing countries and look at regional cooperation to strengthen defences against such crises".
Mukherjee said there was a need to invest more in infrastructure, provide adequate credit support to the poorer sections of the society and create better facilities for upgrading skills and re-skilling of the workforce.
Jobs must be protected even if it entails salary cut: Pranab
With economic slowdown leading to huge layoffs in certain sectors, the government said on Friday that jobs must be retained even if it meant cut in compensation.
"Jobs must be protected even if it means some reduction in compensation at various levels," Finance Minister Pranab Mukherjee said at International Labour Conference in New Delhi on Friday.
He said the the government is making all out efforts to ensure flow of credit to boost trade and investment, consumption and to stimulate additional demand through public and private expenditure.
Mukherjee later told reporters that in the interim Budget he had talked of encouraging investments in infrastructure and in housing and real estate, adding that the government is
providing adequate resources for programmes like NREGA and Bharat Nirman."If the work can be stepped up to a considerable extent, these are directly linked with employment creation and also demand creation. (If) more and more good roads are constructed, cement, steel, every thing will be required. They will get jobs. These type of programmes should be expedited and adequate resources will be provided," he said.
His remarks came as the government on Friday informed Parliament that 5 lakh people lost their jobs during the four-month period ending December 2008, on account of economic crisis in sectors including textiles, automobile and IT.
Mukherjee said the social welfare net needs strengthening because it will provide the base for socially harmonious shift in the pattern of employment.
Strengthening of local demand, empowerment and ownership of the growth process can be ensured only through directed investment aimed at the socially disadvantaged sections of the society, the Finance Minister said.
"Only then can we mitigate the trend for large-scale labour migrations. Strengthening of the health and education services and the protection of the pension systems is the need of the hour if we, as a nation, are to turn this crisis into an opportunity," Mukherjee said.
His remark came as the interim pension regulator is slated to roll out a new pension system for all citizens, except the government employees from the beginning of next fiscal.
The government has earmarked over Rs 1,800 crore for this scheme, which will include the unorganised sector as well."We must display spirit of solidarity by sharing equally the pain of this crisis. A humane globalisation is the answer to the current crisis and its attendant danger of social discord or, even, the heightened risk of terror," he said.
Mukerjee said the government has taken several measures also to protect those who are not exposed.The steps include social protection and unemployment benefits, facilitating additional training and targeted safety nets.
"We are working in the direction of supporting productive, profitable and sustainable enterprises together with a strong social economy and a viable public sector so as to maximise employment," he added.
In his interim Budget speech, the Finance Minister had quoted Nobel laureate Amartya Sen as saying “Along with old slogan of growth with equity, we also need a new commitment towards downturn with security, given the fact that occasional downturns are common-possibly inescapable- in market economies.”
Employment generation schemes have to be expanded and social security nets have to be strengthened to protect the vulnerable sections of the society, he said.