NEW DELHI: A committee comprising top Indian CEOs has argued that India’s proposed free trade agreements (FTAs) could help push exports of auto components and textiles, while also suggesting a sustained effort to reduce five disabilities for domestic companies — cost and ease of doing business, market access via trade treaties, technology and quality issue and supporting Brand India for manufacturing.
The Steering Committee for Advancing Local Value-Add and Exports (SCALE committee), headed by former M&M MD Pawan Goenka — working on increasing exports of 24 identified products — has said that the government needs to urgently address cost issues related to land, power and capital, apart from addressing scale, which lowers cost disabilities.
Addressing concerns around infrastructure and logistics, labour flexibility and strengthening MSMEs could also help in lowering costs for companies and make them more competitive in global markets.
In a presentation made at a meeting between industry players and commerce minister Piyush Goyal on Monday, it suggested a push to the “China plus one strategy” to attract investment from multinationals, while positioning India as an export hub. The minister agreed with several of the suggestions and listed out areas on which the government is already working.
With FTAs in place, the panel concluded that auto components could be the biggest gainer across markets, including the US, UK and the EU.
Similarly, treaties with the UK, EU, Asean, South Asia and the US could benefit textiles. While ACs and drones could gain in at least four markets each, products such as set-top boxes and sports goods & gym equipment may not see much impact of the treaties. The panel made a presentation to commerce and industry minister Piyush Goyal on Monday.