Goyal asks Indian industry to seek reliable partners in supply chain
Goyal stressed the importance of identifying reliable partners for sourcing products in areas where India lacks competitive edge relative to other nations
PremiumNew Delhi: Commerce minister Piyush Goyal on Wednesday asked the Indian industry to do business with reliable partners in the supply chain, in an apparent reference to China which India considers a trade manipulator.
Drawing upon Michael Porter’s competitive advantage theory, Goyal, who was speaking at Confederation of Indian Industry (CII) Annual Session 2023, stressed the importance of identifying reliable partners for sourcing products in areas where India lacks competitive edge relative to other nations. He urged Indian businesses not to be perturbed by this, as these goods could be procured from elsewhere.
Contrary to popular belief, only a small fraction of Chinese imports enter India’s domestic market, according to trade experts. A large proportion serves as inputs for export products.
As per official numbers, total imports from China surged to $98.51 billion during the financial year ended March against $94.57 billion in the previous fiscal.
Ajay Srivastava, founder of the Global Trade Research Initiative, said China imposes numerous import restrictions, compared to India’s more straightforward trade policies.
“For instance, India imports 90% of bulk drugs or APIs from China and allows easy access through a simple registration system. After registration, there’s no rule for checking off each consignment at the time of import. But it’s not the same in China’s case. Registration takes one to three years in China," Srivastava added.
The minister said that there are a number of goods that India imports but has a competitive edge as well as the technology.
“There are several goods where India can become self-reliant. There are unnecessary imports, often of low quality and very poor, sub-standard goods, unsafe to use," Goyal stressed.
As per a statement released by the commerce ministry, Goyal emphasised on the increased global interest in fast-tracking Free Trade Agreements (FTAs) with India. Negotiations are currently underway with Canada, the European Free Trade Association (EFTA), the UK, and the EU.
In a separate event on Wednesday, Goyal hailed the National e-Vidhan Application (NeVA), which aims to make the functioning of all the state legislatures paperless by transforming them into 'Digital House', as a testament to the government’s dedication to leveraging the latest technological advancements for the public good.
Highlighting that NeVA is designed to strengthen institutions and promote transparency, Goyal described it as a project of empowerment for public representatives, enabling legislators to access information not only about their respective legislature but also about developments in other legislatures.
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