December 13, 2024
He highlighted the critical role of imports, particularly raw materials and intermediate products, in boosting exports
Barthwal noted that India’s higher growth rate of 7% compared to the global average of 3-3.5% drives increased consumption and imports
Developed nations must distinguish between migration and mobility, a key issue in India’s free trade agreement negotiations
Ensuring the mobility of professionals is vital for supporting India’s services sector and establishing Indian companies abroad
Commerce Secretary Sunil Barthwal says India should prioritise export growth over concerns about rising imports. Speaking at the Global Economic Policy Forum organised by the Confederation of Indian Industry, he emphasised that India’s 7% economic growth, surpassing the global average of 3-3.5%, naturally drives greater consumption and import requirements.
He underlined the critical role of imports in supporting exports, particularly through raw materials and intermediate products, and urged against adopting a mercantilist approach that focuses excessively on trade imbalances.
Barthwal addressed the global confusion surrounding migration and mobility, particularly in developed nations. He explained that India’s stance in free trade negotiations centres on mobility for professionals rather than migration. Mobility, he argued, is crucial for the growth of professional services and the broader services sector.
To foster this growth, Barthwal advocated for more mutual recognition agreements between nations, facilitating cross-border trade in services. He also cautioned against protectionist measures and increasing trade barriers, which he said stifle global economic progress.
Focusing on building a narrative around the importance of mobility, Barthwal reiterated its significance in India’s trade strategy, urging nations to support this critical enabler of economic growth.
Source: Economic Times