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We should not be overly concerned about imports as long as exports\' share grows: Commerce Secretary

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We should not be overly concerned about imports as long as exports\' share grows: Commerce Secretary

New Delhi: India should not be overly concerned about imports as long as exports\' share continues to grow, Commerce Secretary Sunil Barthwal said on Thursday. He also said the world needs to avoid protectionism which creates more trade barriers and hinders movement of goods. The secretary called for avoiding the \'mercantilist approach\' and not bother too much about trade balance and imports. \"Because if the Indian economy is growing at 7 per cent and if the world is growing at 3-3.5 per cent...then obviously India will be requiring more of consumption, more of imports and let me tell you that the role of imports in exports is also very very important,\" he said at CII\'s Global Economic Policy Forum. Imports of raw materials and intermediate products are essential, he said. During April-October this fiscal, the country\'s merchandise exports rose 3.18 per cent to USD 252.28 billion, and imports by 5.77 per cent to USD 416.93 billion. \"As long as we are able to improve our exports share, we should not be too much concerned about imports and that is what I feel that we need to avoid,\" he added. Further, Barthwal said developed countries are confused about the concept of migration and mobility. If Indians or Indian companies are setting up bases in other countries, then mobility of professionals needs to be ensured, he said adding \"we are not asking for migration, we are asking for mobility\". In FTAs (free trade agreements), this is the point of negotiations with most of the developed world. Smooth movement of these professionals are key issues in India\'s proposed FTAs with countries including the UK and European Union. He also emphasised on the need to build a narrative that mobility is essential for growth of the services sector as a whole. \"In fact it is also good for the developed world that they understand this concept of mobility and do not confuse it with the concept of migration.\" The secretary also advocated for more MRAs (mutual recognition agreements) to enhance services trade. Under these agreements, two or more trading partners recognise each other\'s services, and qualifications for smooth movement of professionals like nurses. \"There is a huge possibility of providing professional services and therefore MRAs are very important ,\" he said adding there is a need to encourage services exports. Talking about trade and its share in GDP, he said the Indian economy is one of the most open economies in the world, with 45.8 per cent of India\'s GDP coming from trade alone. It was just 17.1 per cent in 1991-92.

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