The Indian economy is going through a recession. The current economic situation does not allow that India should follow the path of conservationism. If India advances itself on the lines of protectionism, it will not be good for India. This is to say that Farid Zakaria, a globally renowned journalist and economist.
In an exclusive conversation with India Today Group news director Rahul Kanwal in Davos 2020, Farid Zakaria said that the World Economic Forum (WEF) has always been known for open trade policies, but now times have changed.
Fareed Zakaria said, “During an event in Davos, the US President explained to the world how he wanted to manage trade, limited immigration and controlled technology. China conserves free technology and allows free trade within a certain range. And so we moved forward in an unmanned manner instead of openness.
Farid Zakaria said that conservationism does not work in the Indian scenario, but Prime Minister Narendra Modi has molded it well. Farid Zakaria said that Narendra Modi had come to Davos two years ago. If we look at his speech, then it will be evident that he had raised Donald Trump. His speech left many nations speechless. Business is sinking. We need more free trade. But India has now become the world champion of protectionism.
Farid Zakaria, quoting the US Department of Trade, claimed that India now has the highest trade barriers than any country in the world. This can prove to be a very dangerous path for India. India needs to compete globally. If India starts shutting itself down then it is not good for India.
A liberal economic system is necessary for India
Farid Zakaria said that the United States and China can move forward on protectionism because they are much more liberal than the Indian economy. The Indian economy needs more openness. Foreign investment is needed.
Farid Zakaria said that the liberal economic system introduced in the early 1990s had proved helpful in taking India forward. If India does not move economically towards liberalism and continues its protectionist stance, the Indian economy may get hurt.