PD Sharma writes to Rajeev Kher

Ludhiana, April 18, 2014: In a letter written to Rajeev Kher, Commerce Secretary, Government of India regarding Regional Comprehensive Economic Partnership, the Apex Chamber of Commerce and Industry (Punjab) president PD Sharma has stated they have come across the fact that Government of India is thinking of enlarging regional comprehensive economic partnership.

Further, the letter reads: “Country has already free trade agreements with ASEAN and other countries. The proposed F.T.A includes China, Japan, Australia and New Zealand etc. In this regard some facts must be taken care of before jumping into this venture.

Very unfortunately country is passing through a very unprecedented and undesired phase of development. The circumstances are such that industries instead of incentives wised are in fact demoralized.

All the factors of production are hugely unfavourable as compared to those existing in the proposed countries. Cost & availability of credit has no comparison with these countries. The raw materials of all sorts are mismanaged leading to very enormous level of price. Electric power which is the prime mover of economy has many uncertainties in term of availability and cost.

The labour intensive industries are very uneasy on many aspects. In the prevailing environs change in condition do not seem possible in the near futures.

It is a well known fact that the transacting cost for industry is highly pitched as compared to the comparable countries in the world. “The ease of business” index and other related indices are a highly mismatched with most of the countries in the world.

Above all India is a very populous country needing jobs for the people. These jobs have mainly to come from industries & that too from the MSME sector. Our land acquisition law has almost restricted the expansion of industrial sector.

It is very much in the political arena that reservation quotas may be extended to the private sector as well. If this happens the industry in particular will be completely handicapped.

With these facts in mind it is but appropriate that the proposed Regional Comprehensive economic partnership may be kept in abeyance till we improve our own industrial infrastructure and other parameters.”