FM Arun Jaitley sees adverse impact from protectionist trade policies

Jaitley singled out the Brexit vote and Donald Trump's anti-trade rhetoric in the US elections while warning against protectionism

Finance Minister Arun Jaitley expressed concern on Thursday that a growing populist backlash against globalisation and free trade could have an adverse impact on the world economy.

Addressing a gathering of finance officials of the BRICS group of emerging nations, Arun Jaitley singled out Britain's vote to leave the European Union, as well as an aggressive campaign against trade deals in the US presidential election.

"Part of the developed world is moving towards protectionism," Jaitley said, adding, "If developing countries see a trend of protectionism, the spillover impact on the policies in other parts of the world would be adverse."

Britain's vote and Donald Trump's championing of "America First" are seen as a part of a growing populist backlash against globalisation, which critics sayd has worsened income and social inequities.