New Delhi:Days after the Economic Survey pitched for allowing higher foreign direct investment (FDI) from China, Union Commerce and Industry Minister Piyush Goyal on Tuesday said the government is not rethinking on the issue.
“There is no rethinking at present to support Chinese investments in the country,” Goyal said while addressing a media briefing.
The Economic Survey, tabled in parliament by Union Finance Minister Nirmala Sitharaman a day ahead of the presentation of budget, underlined that India faces two choices to benefit from China-plus-one strategy: it can integrate into China’s supply chain or promote FDI from China. “Among these choices, focusing on FDI from China seems more promising for boosting India’s exports to the US, similar to how East Asian economies did in the past,” the report said.
When asked about the suggestions made in the Economic Survey, Goyal said the report is not binding on the government. The Economic Survey always speaks about new ideas and gives out their own thinking, the minister added.
Meanwhile, addressing a post-budget conference organised by industry body CII, Goyal said India is pushing for a review of the free trade agreements (FTAs) with Japan, South Korea and the Association of Southeast Asian Nations (ASEAN), which were signed during the UPA regime.
The minister said that the pacts signed with Japan, South Korea and ASEAN are hurting India’s domestic industries. “We are under re-negotiations but obviously when they (Japan, Korea, ASEAN) realise that the Congress’s agreement was better for them, they are happier to keep that rather than change the agreements,” the minister said.
“They are going very slow, (but) we are also pursuing,” he added.
Referring to India’s decision to opt out of the Regional Comprehensive Economic Partnership (RCEP) negotiation, Goyal said it was not in India’s interest. According to the minister, a trade deal with RCEP would have flooded the Indian markets with the Chinese goods. “Today we would have been a nation of salesmen and salesgirls,” he said.
The minister said four free trade agreements have been signed since Prime Minister Narendra Modi-led government came to power in 2014. He claimed that these agreements have been signed after extensive consultations with different stakeholders.