A committee comprising India Inc’s top CEOs have argued that India’s proposed Free Trade Arguments (FTAs) could help increase exports of auto components and textiles.
Focussing on cost and ease of doing business, market access via trade treaties, technology and quality issue and supporting Brand India for manufacturing, the Steering Committee for Advancing Local Value-Add and Exports(SCALE committee) suggested that a sustained effort be maintained to reduce disabilities for domestic businesses.
Headed by former M&M MD, Pawan Goenka, the committee is working on improving exports of 24 products that have been identified by them. He said that the government must focus on addressing cost issues, related to land, power and capital, and scale, which in turn helps in lowering cost disabilities.
He added that businesses can be made more competitive in the global markets by addressing concerns related to infrastructure and logistics, labour flexibility. Strengthening MSMEs could also help in lowering costs for companies.
The committee put up a presentation at a meeting between industry players and the Minister of Commerce, Piyush Goyal. In the meeting, on Monday, the committee suggested a push to the “China plus one” strategy. This would help to pull in foreign investment and would also position India as an export hub.
Piyush Goyal agreed with most of the points stated, and said that the government is working towards certain points already. The committee added that with the FTAs in place, auto components could be the biggest gainer across markets like the UK, US and the EU.
Besides that, treaties with the UK, EU, Asean, South Asia and the US could benefit textiles. ACs and drones could also gain in four markets each.
Source : Economic Times
