‘Capitalism will triumph over protectionist policies’

November 16th, 2008 - 10:38 pm ICT by IANS  

New Delhi, Nov 16 (IANS) Entrepreneurs need not worry about the increasing government regulation of markets in times of recession as it is a “short-term” development and will not hamper business growth and innovation, according to a leading global professional services firm.”We will find the right balance in the short-term, and entrepreneurial values and fundamentals of capitalism will always overtake protectionist measures,” Deloitte USA chief executive officer (CEO) James Quigley said here Sunday at the World Economic Forum-India Economic Summit.

Quigley, however, said the global economy was interdependent and the tightening of the markets would affect India also.

According to Kris Gopalakrishnan, managing director and CEO of Infosys Technologies, the economic downturn that dampened the pace of globalisation is a matter of concern.

“Companies might become protectionist about their country losing jobs and that will be a much bigger risk than government policies,” Gopalakrishnan said.

Both the CEOs, however, were buoyant about the Indian economy and said with seven or eight percent growth, the country remained a wonderful place to invest in even at times of credit squeeze.

Gopalakrishnan said the IT services sector was slightly better placed than other industries because it had a “futuristic business model”.

Goldman Sachs India CEO Brooks Entwistle said India and China were not isolated from the world economy, but the investment sentiments in these two economies were not affected.

Citing the example of Norway’s Telenor recently buying into Unitech’s Telecom operations in india, he said: “We are encouraging everyone not to stop exploring investment options in turbulent times.”

“Although raising funds through an initial public offering (IPO) is not viable in times like these, companies should try to raise capital through private equity,” Entwistle said.

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