FM Sitharaman Pursues Swift India-US Trade Agreement, Highlights China’s Market Access Challenges
NEW DELHI: Finance Minister Nirmala Sitharaman has urged for the swift conclusion of the India-US trade agreement, emphasizing its significance for both nations’ economic ties and global trade. Her comments followed a statement from Commerce and Industry Minister Piyush Goyal, who announced that the first phase of the trade pact has been finalized and is currently in the legal drafting stage. Sitharaman expressed hope that the agreement would be signed soon, stating, “Negotiations have been going on. I hope, in the interest of global trade and in the interest of trade between the two partners, India and US, the trade agreement gets concluded at the earliest.”
Sitharaman also addressed concerns regarding India’s trade relationship with China, particularly the growing trade imbalance and the challenges faced by Indian businesses in accessing the Chinese market. Despite years of engagement, India has struggled to secure greater market access for products such as generic medicines and perishable goods. She identified non-tariff restrictions as a major barrier, stating, “Non-tariff barriers are the biggest hurdle in the trade between India and China.” She noted that China continues to impose phytosanitary measures and other non-tariff restrictions, despite opportunities for dialogue.
BRICS should focus on people’s welfare
On the topic of BRICS, Sitharaman dismissed the notion that the grouping aims to counter other countries or blocs. She asserted that its primary focus should be on enhancing cooperation for the benefit of its member nations. “I don’t think BRICS’s intention is to counter others. It is more to strengthen the partnership through the BRICS,” she said. She highlighted that BRICS countries represent nearly 40 percent of the global population, suggesting that greater collaboration could foster trade and economic opportunities.
Sitharaman also pointed out the expanding membership of BRICS, with 11 to 12 countries actively engaging in discussions, collectively accounting for around 45 percent of global trade.
Infrastructure spending has helped sustain India’s growth
Turning to the domestic economy, Sitharaman stated that India has sustained strong growth despite global disruptions. She noted that the country has been the fastest-growing major economy over the past four to five years, particularly since the COVID-19 pandemic. She attributed this growth to inclusive policies, improved resource access, skill development, fiscal prudence, and increased public capital expenditure.
The finance minister emphasized the critical role of infrastructure investment in driving economic activity, claiming it has a more substantial multiplier effect than direct cash transfers. She explained that such investments generate employment and stimulate economic activity, allowing funds to reach the populace while minimizing pressure on the fiscal deficit. Sitharaman linked government borrowing to infrastructure asset creation, asserting that this strategy has yielded significant economic benefits. “Borrowing goes for asset creation, and as a result, the economy has benefited,” she stated.
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