PHD Chamber of Commerce and Industry put forth its recommendation for the forthcoming New FTP

No. PR- 232

February 23, 2021

New Delhi

 

PHD Chamber of Commerce and Industry put forth its recommendation for the forthcoming New FTP

Trade policies need to be owned and adopted by the entire government machinery and not just by the Commerce Ministry which is formulating it for its effective implementation, said Sh. Rajeev Kher at PHD Chamber webinar

The New Foreign Trade Policy (FTP) being formulated by the Union Commerce ministry can be used as a tool in the foreign policy to strengthen India’s competitiveness and partner with newer economies stated former Commerce Secretary and distinguished fellow, Research and Information System for Developing Countries, Shri Rajeev Kher. He was making this statement at the virtual webinar titled-‘Industry Expectations from forthcoming Foreign Trade Policy 2021-26’ organized on Tuesday by the PHD Chamber of Commerce and Industry.  

Speaking at the event, Shri Kher informed that India’s competitiveness would increase from taking newer challenges and tapping emerging economies, however one should not desire to stay behind the protective walls. He explained that duty or tariff increase would be counter-productive and India would lose its competitive advantage if it does not have a proper strategy while doing so.

He explained that India needs to concentrate on some sectors and increasing its participation in the value chain right from cradle to grave and then plan the tariff around it. This will help in accessing newer and refined markets, he said.

Shri Kher added that trade policies need to be owned and adopted by the entire government machinery and not just by the Commerce Ministry which is formulating it for its effective implementation.

According to Shri Kher, the new FTP needs to look at the dynamics of the global value chain. He explained that India can increase its investments in the South Asian region to help it develop into one large production network.

Dr. Ram Upendra Das, Head, and Professor, Center for Regional Trade, Department of Commerce, Ministry of Commerce and Industry, The government of India explains that the policy can bring around a new paradigm and act as an interface between the demand and the supply mechanism by helping source the raw material at the price and the quality that is essential for the industry. It can also help negotiate and help us become more competitive, he said.

He informed that the role of industry chambers in offering suggestions on what kind of hand-holding or incentives should be given to the manufacturing sector is of much importance. However, similar kind of incentives should also be crafted and given to the private sector to help them reach the levels of Aatma nirbharta or self-reliance, he said. 

Dr. Niti Bhasin, Associate Professor, Department of Commerce, Delhi School of Economics stated that India has had a series of individual agreements with several South Asian countries, however trade balance is not favorable and the deficit have been widening. There is a lot of scope for renegotiation and whatever concessions for the goods and services we expect should be worked out in the policy, she said.

Dr. Surendra Munjal, Associate Professor of International Business and Director of India and South Asia Business Centre, University of Leeds explains that the policy needs to be foreseeing or accommodating for the near future. He stated that we are not using the duty structure enough to promote exports and that there is a need to make companies more export oriented.

Speaking of the e-commerce policy 2019, Dr. Munjal stated that looking at MSME’s usage of the e-commerce platform; steps need to be taken to ensure that they are made more competitive by helping them enhance skillset and technology development.

Mr. Saket Dalmia, Vice President, PHD Chamber of Commerce and Industry stated that foreign trade policy should be a roadmap on how to strengthen the country and the exporters.  He stated that regional trade needs to be given priority. He also explained that companies need to complement or collaborate with other countries and not compete to add value.

Mr. Vishal Dhingra, Chairman, Foreign Trade and Investment Committee, PHD Chamber of Commerce and Industry explains that the government has decided to come out of the socialist mindset and helping the companies in making profits. The government also needs to ensure that once it has come out with an export policy, there should be no amendment in the same for the period of at least five years to ensure continuity of the policies.

Ends

Media Division

PHD Chamber of Commerce and Industry