Govt committed to reforms to boost exports.

New Delhi: Concerned about India’s exports contraction and trade account deficit, the government is firmly committed to the reforms agenda, Commerce Minister Anand Sharma said yesterday.

“There are reasons for concerns on trade account deficit. That is why the government has very firmly reaffirmed its commitment to the reforms agenda,” Sharma told mediapersons on the sidelines of the 2nd India-Asean Business Fair and Business Conclave here.

Saying it was the seventh month running that exports had contracted, Sharma said: “We have to do everything which is within our reach to push our exports and to keep the trade account deficit within the manageable limits.”

Sharma said the government was concerned about contraction of demand in major markets globally, which had brought down India’s exports and was directly affecting the country’s industrial productivity. Sharma said the government has done what is required in the way of policy reforms to encourage investments in the economy, “and we will do more in the right direction what we feel is necessary”.

India is set to scale up its multi-faceted relations with the 10-nation Asean to new heights with the two sides expected to declare a free trade agreement (FTA) in services and investment at the two-day commemorative summit.

The summit is expected to culminate in a vision document which will be based on recommendations from the Eminent Persons Group. After the plenary tomorrow, there will be a ceremonial flag-down of the Asean car rally by the leaders of the Asean countries, Syed Akbaruddin, spokesperson of India’s external affairs ministry, said.

Prime Minister Manmohan Singh will host lunch for visiting leaders on Friday. This is the first time India will be hosting a summit with the 10-nation Association of Southeast Asian Nations (Asean) on its soil. The showpiece of the summit is expected to be the announcement of the conclusion of negotiations on a free trade agreement on services and investment.

“Tomorrow (Wednesday) is the ministerial meeting where we would be able to finalise the last leg of our negotiations on the Asean-India free trade agreement on services and investment,” Indian Commerce Minister Anand Sharma said while inaugurating the second India-Asean business fair.

Trade ministers of all Asean member nations were present on the occasion. Added Cambodian Commerce Minister Cham Prasidh: “We may be able to give you good news tomorrow.”

“It will be a game-changer for the nature of economic relations between the two zones,” said Indonesian Trade Minister Gita Wirjawan. Services and investments were the two remaining “pillars” of the India-Asean economic cooperation after the existing FTA on merchandise goods was signed in 2009, Sharma said.

Sharma said the existing FTA in goods with the southeast Asian grouping that came into effect in 2010 had yielded rich dividends by way of a 30 percent rise in annual trade that could touch $100bn by 2015.

“We are aiming that the trade between the two sides will touch $100bn by 2015.” Currently, the trade between India and Asean is at $80bn.

India is also negotiating a market opening agreement bilaterally with the members of the bloc. Srirat Rastapana, director-general in Thailand’s department of International Trade Promotion, said talks between India and Thailand for the market opening accord may be concluded by next month.

“We are at the last leg of negotiations. We started with early harvest scheme. FTA will help to drive the economic relationship bilaterally,” he said. The latest FTA is expected to pave the way for talks on the Regional Comprehensive Economic Partnership (RCEP).

Wirjawan said the FTA in services would be announced at this week’s Asean-India Commemorative Summit, although its implementation could take up to a year. Giving a big boost to India’s Look East policy, Manmohan Singh will hold bilateral talks with the leaders of Indonesia, Malaysia, Laos, Vietnam and Cambodia on the sidelines of the two-day commemorative summit.


Source : thepeninsulaqatar.com