Govt urges industry to leverage FTAs for boosting exports

New Delhi, Sep 29 (IANS) The Director General of Foreign Trade (DGFT) on Tuesday urged Indian industry to leverage the new free trade agreements (FTAs) and work with the government to convert them into actual exports with action on the ground.  

Addressing the Confederation of Indian Industry’s national manufacturing conclave here, DGFT Lav Agarwal said: "Through the new trade agreements, India has opened up markets across the globe and created opportunities that can make Indian industry more competitive. The challenge now is to translate these FTAs into action on the ground."

He urged manufacturers to factor trade into their expansion plans and seek integration into global value chains.

His comments come against the backdrop of India having just operationalised FTAs with the UK and Oman during the current financial year and is scheduled to implement another FTA with New Zealand next month.

Agarwal pointed out that Indian industry did not show the same enthusiasm as UK industry in wanting to know about the details of the market access being provided by the India-UK FTA.

He said the UK government and industry representatives held several meetings with the DGFT to understand the market access available after the agreement, while comparatively fewer Indian industry representatives sought similar discussions.

"We are here to work with all of you. We want to create a framework so that whatever market access an agreement offers does not only remain on paper," he said.

Industrial development ultimately needs to translate into trade, either domestically or globally, he added.

The official also urged industry associations to take the 11 components of the government’s Export Promotion Mission to the grassroots level.

Agarwal urged industry associations to also mentor prospective exporters, including micro, small and medium enterprises (MSMEs) and start-ups, and help translate more than 500 district export action plans into actual exports.

Industry associations need to work with the government on an end-to-end framework covering mentoring and hand-holding of potential exporters, he said.

The mission, approved by the Union Cabinet last November, covers areas including export finance, market intelligence, logistics efficiency, inland export support and compliance with international trade agreements.

"Government policy alone cannot lead to the required results. What we need is a true partnership, and a true measure of success would be how those initiatives are adopted by the industry at large," Agarwal said.

Agarwal said the DGFT had funds available under the Export Promotion Mission. He suggested that combining the Export Promotion Mission with the Districts as Export Hubs initiative could create a more effective export ecosystem.

The government’s Districts as Export Hubs initiative aims to turn every Indian district into a centre for global trade.

Agarwal said the concentration of exports across a small number of states and districts showed the potential for significantly wider participation.

Currently, 10 states account for around 85 per cent of India’s total exports, while 15 states account for around 95 per cent, he added.

--IANS

sps/vd