Why in the news ?

• Formally launching the annual summit of the World Economic Forum (WEF) in Davos, Prime Minister of India equated protectionism with terrorism and, in the defence of globalization.

More on news

• At the annual event, Prime minister urged world leaders to embrace more open trade policies instead of erecting protectionist barriers to tackle unfavourable economic headwinds.
• "Forces of protectionism are raising their head against globalization. Their intention is not only to avoid globalization themselves but also to reverse its natural flow. The result of all this is that we get to witness new types of tariff and non-tariff barriers", he added.
• Many countries are becoming inward focused and globalization is shrinking and such tendencies can’t be considered lesser risk than terrorism or climate change.
• The prime minister’s pitch for a liberal global trade regime came hours after US President slapped extra duties on import of solar equipment and at a time when the domestic business in India is lobbying for relief from cheap imports.
• India’s domestic industry lobbies, especially in the steel sector, have been mounting pressure on the government against any tariff concessions to rivals in the 16-member grouping of RCEP (Regional Comprehensive Economic Partnership) countries, fearing that tariff concessions to countries like China may hurt the domestic steel industry.
• Presenting India’s credentials as an investment destination, PM said his government is following the principle of reform, perform and transform.

World Economic Forum (WEF)

• The World Economic Forum, committed to improving the state of the world, is the International Organization for Public-Private Cooperation.

• The Forum engages the foremost political, business and other leaders of society to shape global, regional and industry agendas.
• It was established in 1971 as a not-for-profit foundation and is headquartered in Geneva, Switzerland.
• The Forum is best known for its annual meeting at the end of January in Davos, a mountain resort in Graubünden, in the eastern Alps region of Switzerland
• The meeting brings together some 2,500 top business leaders, international political leaders, economists, and journalists for up to four days to discuss the most pressing issues facing the world.

Source

The Hindu, The Mint and WEF.