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Union Minister of Commerce and Industry Piyush Goyal (Photo: PTI)
Commerce and industry minister Piyush Goyal on Tuesday cautioned the Indian industry against their reluctance to import duty concessions, saying this may adversely impact the proposed free trade agreements (FTA) with the United Kingdom (UK) and the European Union (EU).
“The industry wants access to international markets, but whichever industry we speak to, they seek protection. Those goods shouldn’t come into India. 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 2024-25 conference organised by industry lobby group Confederation of Indian Industry (CII).
India and the UK have been negotiating a trade agreement for over two-and-a-half years. Both sides were looking to seal the deal earlier this year. However, back-to-back general elections in India, followed by the UK, further delayed the negotiations.
While both sides have made substantial progress, thorny issues such as market access for certain goods and services, an investment pact, among other issues, remain unresolved.
Similarly, launched over two years ago, the progress of the FTA negotiations with the 27-nation European Union has been slow. The next round of talks for the proposed FTA is expected in September.
Goyal further said that the National Democratic Alliance (NDA) led government has till now signed four FTAs and concluded the negotiations after undergoing extensive stakeholder consultations. India took a ‘bold decision’ to walk out of RCEP as it was never a good decision to be a part of those negotiations.
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.
“QCOs will help with better market share and ensure that substandard goods don’t flood the market,” he said, adding that the industry should provide inputs to the government on ways to reduce compliance burdens, processes, and procedures.
He further said that as announced in the Union Budget last week, the government will set up 12 new industrial parks across the country and has five-six mega textile parks lined up. “Indian investors should be forthcoming in supporting startups and MSMEs by utilising benefits provided by the government. Let’s be the change and make the difference we want to see in India,” he said.
First Published: Jul 30 2024 | 7:20 P.M IS