| Date: |
20-02-2015 |
| Subject: |
FTAs not leading to wider trade deficits, says trade ministry |
|
HYDERABAD: Allaying fears of traders that Free Trade Agreements (FTAs) had played a major role in widening India's trade deficit, senior officials of the Union commerce and industry ministry on Thursday explained that the rationale behind India entering into FTAs was the diversification and expansion of goods and services exports to foreign countries as well as gaining access to raw materials, intermediate products and capital goods for stimulating value-added domestic manufacturing.
FTA did not necessarily increase the trade deficit but ensured robust trade relations with foreign countries, they explained.
Sanjeet Singh, director, department of commerce, Union ministry of commerce and industry, said, "Our trade deficit is the highest with China, but we have no trade agreement with them. Our trade with China is almost 10-12% of our total trade, yet China accounts for around 30% of the trade deficit."
Moreover, Free Trade Agreements have adequate safeguard mechanisms to tackle the adverse impact of imports on the domestic industry and take corrective action against import surges, Singh said while speaking at a seminar on 'India's engagement with FTA's: Opportunities and challenges', organized by national as well as local industry associations here.
Meanwhile, Anuradha Guru, director, department of commerce, Union ministry of commerce and industry, said the government would increase its outreach programs to interact with industry bodies at various states, educate them about several aspects of FTAs and address their queries on the subject.
Source : timesofindia.indiatimes.com
|