[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Last Updated: Friday, 4 February, 2005, 11:41 GMT
India calls for fair trade rules
An Indian woman picks tea
India says rich nations' aid to farmers hurts its own, poorer growers
India, which attends the G7 meeting of seven leading industrialised nations on Friday, is unlikely to be cowed by its newcomer status.

In London on Thursday ahead of the meeting, India's finance minister, lashed out at the restrictive trade policies of the G7 nations.

He objected to subsidies on agriculture that make it hard for developing nations like India to compete.

He also called for reform of the United Nations, the World Bank and the IMF.

Terms of engagement

Palaniappan Chidambaram, India's finance minister, argued that these organisations need to take into account the changing world order, given India and China's integration into the global economy.

He said the issue is not globalisation but "the terms of engagement in globalisation."

Mr Chidambaram is attending the G7 meeting as part of the G20 group of nations, which account for two thirds of the world's population.

At a conference on developing enterprise hosted by UK finance minister Gordon Brown on Friday, he said that he was in favour of floating exchange rates because they help countries cope with economic shocks.

"A flexible exchange rate is one more channel for absorbing both positive and negative shocks," he told the conference.

India, along with China, Brazil, South Africa and Russia, has been invited to take part in the G7 meeting taking place in London on Friday and Saturday.

China is expected to face renewed pressure to abandon its fixed exchange rate, which G7 nations, in particular the US, have blamed for a surge in cheap Chinese exports.

"Some countries have tried to use fixed exchange rates. I do not wish to make any judgements," Mr Chidambaram said.

Separately, the IMF warned on Thursday that India's budget deficit was too large and would hamper the country's economic growth, which it forecast to be around 6.5% in the year to March 2005.

In the year to March 2004, the Indian economy grew by 8.5%.




SEE ALSO:
Rich countries mull growth plans
04 Feb 05 |  Business
What can the G7 meeting achieve?
04 Feb 05 |  Have Your Say
Mandela steals the show in London
03 Feb 05 |  Politics


RELATED INTERNET LINKS:
The BBC is not responsible for the content of external internet sites


PRODUCTS AND SERVICES

News Front Page | Africa | Americas | Asia-Pacific | Europe | Middle East | South Asia
UK | Business | Entertainment | Science/Nature | Technology | Health
Have Your Say | In Pictures | Week at a Glance | Country Profiles | In Depth | Programmes
Americas Africa Europe Middle East South Asia Asia Pacific