Parliamentary Panel in Government, Auto News, ET Auto
The government should iron out the problems that hinder the signing of free trade agreements (FTAs) with the United States and EU countries, as domestic exporters are at a disadvantage due to the lack of such agreements, a recommended a parliamentary panel in a report submitted Saturday. .
The Standing Parliamentary Committee on Trade chaired by YSR Congress chief Vijaysai Reddy submitted the report to Rajya Sabha Chairman Venkaiah Naidu, in which he expressed concern about the contraction in Indian exports from 2019 to 2020, recording a negative growth rate of (-) 15.73% in 2020.
In view of the crucial role played by exports in the overall economic growth of a country, the Committee in the report held that “India must step up its efforts in promoting exports, broaden its export baskets and penetrate new markets. new export markets to recover from its current crisis and increase its share in world exports ”.
The panel also pointed out that Indian exporters are “at a disadvantage” in the US and European markets as they compete with other exporting countries due to the lack of FTAs with the United States and countries of the United States. the EU.
“The Committee recommends that the Ministry of Commerce iron out the problems which have hampered the signing of FTAs with our main trading partners and conclude trade agreements beneficial to our country while balancing the interests of the internal market with those of our exporters” , the report said.
The panel also expressed concern that the share of rail freight over road is only 35 percent as the trend is reversed in developed countries.
The Committee therefore recommends that the Ministry of Railways undertake a detailed study on the reason for the low share of rail and make concerted efforts to increase the share of rail in freight traffic, according to the report.
At the same time, the panel said, it is “disheartening to note that the Ministry of Railways is unable to provide competitive freight rates for the movement of export shipments.”
The Committee believes that this will adversely affect the competitiveness of Indian exports in world markets, as the cost of freight plays a crucial role in determining the final price of the product, according to the report.
The panel undertook an in-depth review of the export-oriented measures and held seven meetings with all stakeholders for nearly twenty hours, he said.
The panel led by Reddy, who is a well-known accountant, in the report recommended that the government take appropriate action, review its export strategies and policies to achieve a positive export growth rate and higher share. in global export markets.