G20 meets as India warns against protectionism

India called for a more concerted effort to deal with the crisis and warned that the world would go into a downward spiral if protectionism continued.

Looking for supply of “oxygen of confidence” to the battered global economy,divided leaders of world’s top 20 rich and emerging economies will meet in London on Thursday with India calling for a more concerted effort to deal with the crisis and warning that the world would go into a downward spiral if “we give in to protectionist pressures”.

US President Barack Obama,who will be at the centre-stage when Prime Minister Manmohan Singh and other leaders gather at London Docklands amidst massive security,sought to rally the participants by stating that the challenge can be met together and dismissing reports of divisions among them as “vastly overstated”.

Obama’s optimism,however,flew in the face of sharp differences highlighted by the tough stand taken by France and Germany on some of the key issues with French President Nicolas Sarkozy insisting today that the Summit should agree to crack down on tax havens and evolve a tough new regulatory mechanism on global finance.

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Sarkozy claimed endorsement for this stand from German Chancellor Angela Merkel with whom he had spoken.

British Prime Minister Gordon Brown,playing host to the most important gathering of world leaders in his country in 70 years since the Great Depression,also sought to project a positive outlook by stating after a meeting with Obama “we are within a few hours of agreeing on a global plan on economic recovery and reform”.

Earlier,he had emphasised that the leaders must supply “the oxygen of confidence to today’s global economy”.

The only economist-turned-politician in the gathering,Singh on the one hand sought not to raise too many expectations from the meeting saying that the Summit should not look for “complete agreement in everything”,but at the same time noted that there was a shared sense of urgency and commonality of purpose.