The Hindu : Business : RTAs crucial for economic growth, says Kamal Nath

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Tuesday, May 10, 2005

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RTAs crucial for economic growth, says Kamal Nath

Special Correspondent

Need to frame rules of origin keeping the specifics in mind

BANKING ON TRADE: The Union Minister for Commerce and Industries, Kamal Nath, with the CII Vice-President, Y. C. Deveshwar (centre) and the Director General, N. Srinivasan, during a meeting with CII members on Trade Policy in New Delhi on Monday. — Photo: Rajeev Bhatt

NEW DELHI: The Union Commerce and Industry Minister, Kamal Nath, on Monday said regional trading arrangements (RTAs) are crucial for the growth of the economy.

He said the country was specifically looking at the RTAs with a view to expanding its economic engagement.

Addressing an interactive session with industry organised by the Confederation of Indian Industry (CII), he felt that there was a need for an impact assessment of the RTAs. In this context, he maintained that there was need to frame rules of origin carefully keeping the specifics of the situation in mind.

The Government had already taken measures to create a level-playing field by correcting the inverted duty structure. He conceded, however, that some duties still had to be corrected but this would be addressed shortly.

On the issue of competitiveness, he said there was a need to improve it in view of the country's global engagement.

As for issues relating to the World Trade Organisation (WTO), he said that during the recent WTO mini-ministerial held in Paris, India had made it clear that it was not going to import subsidised products. He said developed countries gave huge subsidies making it difficult for farmers in developing countries like India to compete with the former's artificial prices. On the infrastructure front, he said the Prime Minister, Manmohan Singh, had announced a Rs. 24,000 crore rail project which could play a major role in transporting goods all over the country.

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