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Informist, Thursday, Dec. 12, 2024

 

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--Trade secy: FTA talks taking time as India pushing for svcs sector exports 
--Trade secy: FTA talks taking time as India wants mutual recognition pacts 
--Trade secy: Mutual recognition pacts of paramount interest under FTA talks 
--Trade secy: As long as share of exports rising, no concern over imports 
--Trade secy: Should not be too bothered about trade gap 
--Trade secy: Nations need to avoid trade barrier, mercantilist approach 
--Trade secy: Need collective global effort to end protectionism 
--Trade secy: Svcs sector exports will soon exceed goods exports 
--Trade secy: India already a part of global value chains 
--CONTEXT: Trade Secy Barthwal speaking at CII Global Econ Policy Forum 
--Trade secy: India more open in terms of trade than EU or US
--Govt source: India may gain from US tariff action on China, Mexico

 

NEW DELHI– There is no need to worry about India's high imports as long as the share of exports is rising, Trade Secretary Sunil Barthwal said Thursday. The comment assumes significance as latest data shows India's merchandise imports shot to a record high of $66.34 bln in October. 

 

Sometimes imports rise on the back of inbound shipments of raw materials required to manufacture goods for exports, Barthwal said. In fact, globally, all nations should avoid a mercantilist approach, "where you are too concerned about your imports," Barthwal said at Global Economic Policy Forum organised by the Confederation of Indian Industry.

 

Barthwal's remark also assumes importance in the backdrop of US President-elect Donald Trump threatening to impose high tariffs on countries that have a trade surplus with the US. India also had a trade surplus of $35.32 billion with the US in 2023-24 (Apr-Mar) 

 

"The globe needs to avoid protectionism which creates trade barriers and hinders trade," Barthwal said. 

 

While Trump will take charge in January, he has already said that the US will impose high tariffs on China, Mexico, and Canada. "However, India may gain from the US tariff action these countries," another trade ministry official said on the condition of anonymity. 

 

Trump has called India a "tariff-king" but hasn't announced any specific tariff measures against New Delhi. 

 

Meanwhile, Barthwal said that the Indian economy is pretty open in terms of trade. "About 45.8% of India's GDP is from trade alone, for the US it is hardly 38% and in China it is 25%," Barthwal said. "It may appear that China is more open or the US is more open. We are a much more open economy. We are part of global value chains now."

 

Further, the trade secretary said that India has also been focussing on pushing the services sector exports. Discussions over having a mutual recognition agreement are of paramount importance during the government's negotiations for free trade pacts, Barthwal said, adding this also leads to the commerce ministry taking longer time to conclude FTA negotiations. 

 

With these efforts, soon India's services exports would exceed the merchandise exports, Barthwal said. India's services exports were about $216 billion in Apr-Oct compared with $252.3 billion merchandise exports, as per the commerce ministry.  End

 

US$1 = INR 84.87

 

Reported by Krity Ambey and Priyasmita Dutta

Edited by Akul Nishant Akhoury

 

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