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India is in discussion with ASEAN to start FTA review: Patel.
Feb 10, 2022
India is in discussion with the 10-nation bloc ASEAN for initiating the review of the free-trade agreement in goods between the two regions to seek more market access for domestic products, Parliament was informed on Wednesday. Minister of State for Commerce and Industry Anupriya Patel said the market access issues and trade barriers being faced in ASEAN (Association of Southeast Asian Nations) countries and China are being regularly taken up with individual countries through bilateral engagements.
'The Government of India is in discussion with ASEAN countries for initiating the review of ASEAN-India trade in goods agreement to seek more market access for Indian products,' she said in a written reply to the Lok Sabha.
In a separate reply, she said that to increase exports including apparel exports, India is actively negotiating regional trade agreements (RTAs)/ FTAs with a number of countries including the UAE, Australia, Canada, Israel and the UK.
'Ongoing FTA negotiations will also provide more favourable market access to products exported from India,' she said.
The minister said that textile and apparel export growth has been facing adverse impact of the COVID-19 pandemic and higher import tariffs in key markets such as the European Union and the United Kingdom as compared to zero duty access in these countries to competing countries like Bangladesh and Cambodia.
Replying to a question on export dues, she said the government has released Rs 56,027 crore in order to clear pending export incentive dues to exporters. This is for various schemes - Merchandise Exports from India Scheme (Rs 33,010 crore, Service Exports from India Scheme ( Rs 10,002 crore), Rebate of State and Central Taxes and Levies ( Rs 5,286 crore), Rebate of State Levies (Rs 330 crore), and Remission of Duties and Taxes on Exported Products (Rs 2,568 crore) and other legacy schemes like Target Plus Scheme, Focus Product Scheme.
'It is estimated that such benefits would be disbursed to more than 45,000 exporters, out of which the majority would be in the micro, small and medium enterprises (MSME) category,' Patel said.
Clearance of dues under these schemes is dependent on meeting the eligibility criteria by the applicant exporter, whose applications are scrutinised for any deficiency.
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