India has said when there is a need to regulate the financial market, the same should not be used to devise any kind of protectionism.
"We shall have to strike a balance. First of all, I would like to... In the name of the financial regulation and to regulate the markets and as I started off, I mentioned protectionism need not come. Yes, there is a need of regulating the financial market," Finance Minister Pranab Mukherjee said in an interview to CNN international.
"At the other side of the picture, these instruments need not be used to devise protectionism in some forms. Therefore, there too, we shall have to keep in view the federal reserves -- the larger social interests -- interests of the society as a whole, not fragmented and fractured internally," he said.
Noting that there is no consensus among major economies on the lessons learnt from the current global economic crisis, Mukherjee said: "But if we look at the way G-20 responded and we have ourselves been made to address only those issues where there is the possibility of consensus."
The Finance Minister felt that G-20 should not pick up those issues where consensus is elusive. "That there should not be, in the name of financial agreement...It should not be too much constructionist policies in the grab of another form of protectionism," he said.
Responding to a question, Mukherjee said India shall have to come back to the fiscal conservatism. "That's why in my medium term plan, I have indicated that I am ending the year with a 6.8 per cent of fiscal... But I will come around to 5.5 and four per cent in the next two years," he said.