What alternate markets can absorb the kind of goods we currently export to the US?Europe is the most obvious option. The India-EU trade agreement has been under discussion for 18 years — this is the time to conclude it. If the Europeans want lower duties on their cars or wines, we should consider it favourably. We have already agreed to concessions with the UK, so why not extend it to the EU?Our negotiating strategy has been about protecting weak sectors, but that prevents us from gaining new markets. For example, why protect automobiles when our biggest carmaker is Maruti, which is essentially a Japanese company? Instead, let’s focus on the bigger picture — conclude the EU deal and open up a market of 360 million people.China is another option. Why this Press Note 3, and why this on-engagement with China? I am happy that the Prime Minister is going to attend the SCO meet. It’s the world’s second-largest economy and imports large quantities of agricultural products from the US. Why not us? It’s not easy, but we need to take it seriously.Can China be a major export destination for India?Yes. China imports a huge volume of agricultural products. We could compete there. Additionally, as Chinese wages are rising, they are shifting away from labour-intensive manufacturing. That creates opportunities for us. But the key is strategy. The government must actively support private exporters.What support should the government give to the exporters?The support should be in the form of market-specific interventions, rather than general policies. For example, when I was at the NITI Aayog and spoke to people at Apple, their requirements were very different from those of other companies. We need customised approaches for each market and each sector.Also, each state in India should have its export promotion policy. What works for Punjab won’t work for Tamil Nadu. For instance, Agra is a major leather hub—if we bring in a big brand like Nike as an anchor investor, the entire supply chain can grow rapidly.Should we continue to protect our agricultural and dairy sectors?We need to be more nuanced. My only broad point is that we should not allow GMOs (Genetically Modified Organisms), since we don’t fully know their health effects. Beyond that, it has to be sector-specific. For example, there’s no harm in importing maize to feed our cattle and poultry, and if it frees up land for other uses. The idea is to be granular, not general.
Source link
