NEW DELHI, SEPT 16: India will take up the issues of controlling global capital flow and reforms of the international financial system at the annual IMF-world bank meeting in Washington next month to ensure that "unscrupulous global operators did not trample upon national interests" of developing countries as in South-east Asia, Finance Minister Yashwant Sinha said here today.Addressing the Economic Editors conference, Sinha also said he would not allow the fiscal deficit to cross 5.6 per cent of the GDP and promised to keep the inflation under control. Sinha expressed confidence in the strengths of the economy and said that the feel-good factor was returning to the industry."No country in the world can allow its national interests to be trampled upon by unrestricted, unchecked and indisciplined international operators," and the global village can no longer afford total lack of compassion and mercy of market forces, he said with reference to controlling international money flows.On the domesticissues, Sinha said that the inflation was rising on account of agricultural commodities and not on account of manufacturing sector. ``I expect the kharif crop to be very good this year. This will bring the prices down which wil reduce the rate of inflation.'' Addressing the Economic Editors Conference, he said that international investors were realising that Indian was a good bet for investments compared to the countries in South East Asia.He accepted the responsibility of uncertain atmosphere created by political instability but said that India had been able to pull though a very difficult period ever since his Government took over. The nuclear tests and the resultants sanctions put India under pressure. Also the deepening crisis in Asean countries and the world markets affected the business sentiment.Sinha said foreign investors continue to be welcome and there has been no change in government policies in attracting foreign direct investments and if at all there was any change it was only to make thepolicy more investor-friendly."India will not retreat into protectionism," he asserted while adding that "this is not our case. Our case is increasing globalisation."Sinha said there were examples of several developing countries which could not adapt to change. These countries have been overtaken by events.He said India still remained a favourite destination for investments as foreigners perceived it as a stable economy as compared to turbulence elsewhere.He said a negative image was sought to be created about India. "Of a prehistoric era of stone aged men trying to club foreign investors. Nothing could be farther from truth than this," he said. Asked about the anti-foreigner statements of the Swadeshi Jagran Manch, Sinha said, ``the Manch is not part of the BJP-led coalition.''
