New Delhi: The commerce secretary Sunil Barthwal on Thursday said that India should not be overly concerned about imports as long as exports’ share continues to grow and the world needs to avoid protectionism, which creates more trade barriers and hinders movement of goods. The top official’s statement is in sync with the point of negotiations with most of the developed world.
The secretary further said that one needs to avoid the mercantilist approach and should not bother too much about trade balance and imports. “Because if the Indian economy is growing at 7 per cent and if the world is growing at 3-3.5 per cent rate of growth then obviously India will be requiring more of consumption, more of imports and let me tell you that the role of imports in exports is also very important,” he said at a CII event.
In the free trade agreements (FTAs), this is the point of negotiations with most of the developed world. He emphasised on the need to build a narrative that mobility is essential for growth of the services sector as a whole including professional services. “In fact it is also good for the developed world that they understand this concept of mobility and do not confuse it with the concept of migration,” he said, adding that the globe should avoid taking protectionist measures and raising trade barriers.
Barthwal said that imports of raw materials and intermediate products are essential. “As long as we are able to improve our exports share, we should not be too concerned about imports and that is what I feel that we need to avoid. The developed countries are confused about the concept of migration and mobility. If Indians or Indian companies are setting up bases in other countries, then mobility of professionals needs to be ensured,” he said.
The secretary called for more and more mutual recognition agreements or MRAs to enhance services trade. Under these agreements, two or more trading partners recognise each other's services, and qualifications for smooth movement of professionals like nurses. There is a huge possibility of providing professional services and therefore MRAs are very important,” he said, adding that there is a need to encourage services exports.�
