NEW DELHI: Commerce and industry minister Anand Sharma said his ministry would look at the possibility of more incentives for the industrial and export sectors that are battling with economic slowdown and would hold discussions with the finance ministry on suitable measures to be taken in the next budget.
The minister said while India was expected to maintain its exports of $164 billion in the current fiscal, which was good compared to the expected shrinkage in the world economy, emphasis would be given to encourage labour-intensive sectors like handloom and textiles to ensure sustainable employment generation. “Steps were taken by the previous UPA government in the direction and we will continue with them,” he said.
On the new foreign direct investment (FDI) guidelines, which were opposed by the RBI and the finance ministry on the grounds that it could lead to a breach of existing sectoral caps, the minister said there won’t be a comprehensive review of the guidelines. “When a major policy decision is made, there are differing view points. This was a well considered decision of the government. I do not see any reason for a comprehensive review,” he said.
The minister, however, maintained caution on the issue of opening up of sectors such as multi-brand retail. “We are not taking up sectors that have not been discussed so far. We need wider consultation on these within the Cabinet,” he said. The minister said he would hold discussions with industry and export chambers and would go into issue-wise details of what needs to be done. While some measures could be addressed in the budget, others, including reduction of transaction costs, would be taken up in the foreign trade policy to be announced in August, just after the budget, he said.
Stressing that the special economic zones (SEZs) policy has taken care to frame rules to protect interest of farmers and encourage inclusive growth, he said the UPA was open to discussing the issue and other important policy initiatives with its coalition partners.
Mr Sharma said the free trade agreements that have been finalised with Asean, South Korea and Nepal would be taken to the Cabinet soon for its approval. The ongoing bilateral and plurilateral talks with the EU, Japan, SACU (South African Customs Union) and IBSA (India, Brazil, South Africa), will also be expedited.
India is ready to do its bit in moving the stalled multilateral trade negotiations at the World Trade Organisation (WTO) forward and would agree to negotiate on the texts that were put forward by the WTO committees of agriculture and non-agriculture market access (Nama), the minister said. The final outcome, however, has to ensure that larger interest of people in developing countries is protected, he said.
Source:The Economic Times