‘Industry demand for protection may derail FTA discussions’

Commerce and Industry Minister Piyush Goyal cautioned the Indian industry against their reluctance to import duty concessions, saying this might adversely impact the proposed free-trade agreements (FTA) with the United Kingdom (UK) and the European Union (EU), which are a two way traffic.

“The industry wants access to international markets, but whichever industry we speak to, they seek protection. Those goods shouldn’t come into India. The domestic players seek duty concessions in FTAs but are not ready to give market access to other countries.

Then how can we do FTAs with the UK and EU? The industry isn’t in favour of (India giving) duty concessions but wants zero duty on everything. Is this how FTAs are done? What is the cooperation from your side?” Goyal said.

The minister was speaking at a post-Union Budget conference organised by industry lobby group Confederation of Indian Industry (CII).

India and the UK, have been negotiating an FTA for over two-and-a-half years. Similarly, launched over two years ago, the progress of the FTA talks with the 27-nation European Union has been slow. The next round of talks for the proposed FTA is expected in September.

He said the negotiations to review the FTAs implemented with Japan, Korea, and Asean were moving slow but India was pursuing those talks. “I am helpless as those agreements were signed and implemented during UPA regime, before we came to power. I am helpless to change it until we close the negotiations,” the minister said.

The minister also urged the industries’ cooperation to move faster on FTAs and use the Quality Control Orders (QCOs) to their benefit and also to raise their standards.

He also said that industry is not concerned about how much India’s foreign exchange is being used and asked industry about their contribution to change things, citing that industry participation in government meetings is low.

“When I appeal to you to buy goods made by Indian firms, you (industry) say you save money from importing,’ Goyal said, adding that the industry does not think about India’s forex reserves as if it is the only responsibility of the government and the Reserve Bank of India.

The minister also urged industry to come forward and support the startups in funding so that they do not have to sell their ideas for “few dollars”.

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