The authorities ought to iron out the problems hindering the signing of Free Trade Agreements (FTAs) with the US and the EU nations as home exporters are at an obstacle because of the absence of those agreements, a parliamentary panel has really helpful in a report submitted on Saturday.
The Parliamentary Standing Committee on Commerce chaired by YSR Congress chief Vijaysai Reddy submitted the report back to Chairman of Rajya Sabha Venkaiah Naidu, whereby it has expressed concern that India’s exports contracted from 2019-20, registering a unfavourable progress price of (-) 15.73 % in 2020.
In view of the essential position performed by exports within the total financial progress of a rustic, the Committee within the report opined that “India needs to step up its effort in export promotion, expand its export baskets and penetrate new export markets to recover from its current slump and increase its share in global exports”.
The panel additionally underlined that the Indian exporters are at a ‘disadvantage’ within the US and the European markets whereas competing with different exporting nations because of the absence of FTAs with the US and the EU nations. “The Committee recommends the Department of Commerce to iron out the issues that hindered the signing of FTAs with our leading trade partners and enter into trade agreements that are beneficial for our country while balancing the interest of the domestic market with that of our exporters,” the report said.
The panel additionally expressed concern that the share of rail freight vis–vis highway is just 35 % whereas the development is reversed in developed nations. The Committee, due to this fact, recommends the Ministry of Railways to undertake an in depth research on the explanation for low share of rail and take a concerted effort to extend the share of rail in freight site visitors, the report stated.
At the identical time, the panel stated, it’s “disheartening to note that the Ministry of Railways is unable to provide competitive freight rate for movement of export consignment.” The Committee feels that this may adversely have an effect on the competitiveness of India’s exports in world markets as freight value performs an important position in figuring out the ultimate value of the product, as per the report.
The panel undertook an in-depth examination of export-oriented measures and held seven conferences with all stakeholders spanning over for practically twenty hours, it stated. The panel led by Reddy, who’s a famous chartered accountant, within the report really helpful the federal government to take acceptable measures, relook its export methods and insurance policies to realize a constructive progress price of exports and better share in world exports markets.