We should not be overly concerned about imports as long as exports' share grows Comm Secy

    New Delhi, Dec 12 (PTI) India should not be overly concerned about imports as long as exports' share continues to grow, Commerce Secretary Sunil Barthwal said on Thursday.
     He also said the world needs to avoid protectionism which creates more trade barriers and hinders movement of goods.
     The secretary called for avoiding the 'mercantilist approach' and 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...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 very important," he said at CII's Global Economic Policy Forum.
     Imports of raw materials and intermediate products are essential, he said.
     During April-October this fiscal, the country's merchandise exports rose 3.18 per cent to USD 252.28 billion, and imports by 5.77 per cent to USD 416.93 billion.
     "As long as we are able to improve our exports share, we should not be too much concerned about imports and that is what I feel that we need to avoid," he added.
     Further, Barthwal said 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 adding "we are not asking for migration, we are asking for mobility".
     In FTAs (free trade agreements), this is the point of negotiations with most of the developed world. Smooth movement of these professionals are key issues in India's proposed FTAs with countries including the UK and European Union.
     He also emphasised on the need to build a narrative that mobility is essential for growth of the services sector as a whole.
     "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."
     The secretary also advocated for more MRAs (mutual recognition agreements) 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 there is a need to encourage services exports.
     Talking about trade and its share in GDP, he said the Indian economy is one of the most open economies in the world, with 45.8 per cent of India's GDP coming from trade alone. It was just 17.1 per cent in 1991-92.
     He said that the services sector is taking prominence in the country's trade as it accounts for 43.8 per cent of India's total exports and surpassing the global average of 24.7 per cent.
     Barthwal stressed on the importance of education, particularly in STEM ( science, technology, engineering, and mathematics), as a critical enabler for growth in the services sector and called for greater investment in primary to higher education and digital literacy to harness its vast talent pool.
     In a separate session, the secretary said India's free trade agreements are also aimed at increasing integration of domestic firms in the global value chains.
     Recalling his meetings with EU officials in Brussels recently, he said:"I told them that FTAs should not be looked at only from the legalists or regulatory practices point of view. It also needs to be looked at from the view of integration of value chains".
     He said that these pacts are legal documents in perpetuity, therefore it takes time to get finalised.
     Speaking at the session, Dammu Ravi, Secretary, Economics Relations, Ministry of External Affairs, said that both exports and imports are important.
     "You do not have to go to zero tariff (or customs duties) to be able to drive our own supply chains, it is the consistency of the tariff policy which is important," he said.
     Ravi added that national or multi-national companies face difficulties in setting up manufacturing bases if there are frequent changes in the tariff policy of a country.

(This story has not been edited by THE WEEK and is auto-generated from PTI)