Commerce & industry minister Piyush Goyal Thursday said govt will focus on easing processes and faster clearances, wherever required, to boost FDI flows, while asserting that Indian economy has seen a robust expansion in first quarter, for which data is due to be released next week.
Focus on value chain, KYC
“We are open to ideas, whatever industry demands… there’s tremendous scope to improve process, procedure and policy to help faster flow of FDI and to help give comfort to investors about the fact that their investments will lead to production and productive activity faster,” the minister said. He added that faster and more efficient KYC norms and mutual recognition agreements with regulators from other countries are required so that approvals on both sides are recognised and there could be some areas for simplification.Goyal said govt was keen that investment model should not only focus on large companies but the entire value chain that leads to downstream indigenisation. In paints, for instance, import of titanium dioxide, a key input, is of the tune of $1 billion and govt wants it to be manufactured in India, he said.Similarly, the idea is to go beyond semiconductors and promote production of gases, specialty chemicals, equipment, components, so that the value chain goes beyond design and testing or assembly.“So, our effort is more and more going deep dive, becoming self-reliant, and also creating more jobs.”
No decision on CPTPP, focus on FTAs
Goyal has pitched India’s FTAs as an opportunity for investors to make use of and export to other countries, in addition to making in India for domestic market. While stating that more FTAs – from Canada and Chile to Israel and the South African Customs Union — are under negotiation, he said there is no decision on Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) – the 11-nation trading bloc that includes Japan, Australia, Canada, Chile, Malaysia and Singapore. “A lot of people are asking us to consider this suggestion. We have not yet really applied our mind to it.”
Strong growth in Q1
“The reports I am getting from industry seem to suggest that the first quarter has gone quite well. Export has been up 15%. So, my own sense is the first quarter will once again give very good results. Despite all the global uncertainties and challenges, we were the fastest-growing large economy last year, probably the first quarter will continue to show that India is a resilient nation, on the move,” he said.Goyal said that while FTAs open doors to overseas markets, there is a large domestic economy that companies can tap. While trade with West Asia is normalising, Goyal said that efforts are underway to open new routes on the eastern sides, be it oil and gas pipelines or train lines.
Japan’s demand
The minister said that Japan has demanded restoration of benefit for a chemical that is used in the semiconductor value chain and govt will seek to ensure that the benefit, which was withdrawn due to misuse, is tapped properly.
