New Delhi: At a time when government is reviewing FTAs, exporters body FIEO on Thursday asked government to sign FTA with China, saying it will boost India’s exports to the communit country. “Indian government should boldly start looking at FTA with China. Why we are afraid of China,” said Federation of Indian Export Organisations (FIEO), president Rafeeq Ahmed.
He said that there is an opportunity if India enters into FTA with China and the benefit will come to India. “Our exports will go into China. Chinese economy is booming. China’s internal consumption is going up," said Mr Ahmed. He said that FIEO though its participation in fairs in China, has seen demand for its products.
Mr Ahmed said that in the long term Indian exporters will be benefit. He claimed that India’s tariff are lower than China’s. “So they will not get benefit, we will be able to get more benefit. Government should not hesitate from this aspect,” said Mr Ahmed. He said that as part of BRICS, FTA between India and China will strengthen their relationship. “If Thailand can have FTA with China, if ASEAN can have FTA why cant India. We should have guts,” said FIEO chief.
India has a trade deficit of about $37 billion with the neighbouring country. FIEO said that wages are increasing in China and companies are shifting their manufacturing bases from China. “India should take advantage of this opportunity. Setting up of export clusters or parks will help in attracting investments which are shifting from China,” said Mr Ahmed.
FIEO also said that India should resume the FTA with the European Union. FTA with EU would help in boosting exports of sectors including textiles and leather, it added.
