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India can gain over $500 bn yearly joining TPP: Economic Survey

By joining an expanded Trans-Pacific Partnership (TPP) or participating in a comprehensive Free Trade Area of the Asia Pacific (FTAAP) and the country's national income would expand by 4%, or $200 billion

IANS  |  New Delhi 

Economic Survey 2016 which was tabled in Parliament  in New Delhi on Friday during the Budget session
Economic Survey 2016 which was tabled in Parliament in New Delhi on Friday during the Budget session

India could experience export gains of more than $500 billion per year, or 60% increase, from joining an expanded Trans-Pacific Partnership (TPP) or participating in a comprehensive Free Area of the Asia Pacific (FTAAP) and the country's national would expand by 4%, or $200 billion, said the 2015-16.

The Survey, presented by Finance Minister in parliament on Friday, cited experts to say that India is most competitive in services and reduction of barriers in services among members will result in growth in India's services exports.
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"The possible risks of not joining the are difficult to quantify, but some of the research has highlighted the possibility of diversion and raised concerns about erosion of India's share in exports to the and Europe," it said.

The is a US-led agreement involving twelve Pacific Rim countries and concerning a variety of matters of and economic policy, on which consensus was reached in October last year after seven years of negotiations.

"The is expected to make around 11,000 tariff lines duty free for its members, which may result in loss of competitiveness of Indian exports in these markets," it added.

Noting economies on average are more open than the Indian economy, the survey said the service restriction index of the World Bank indicates that the economies are less stringent about entry of services than India.

Last month, Commerce Minister Nirmala Sitharaman sought to reassure Indian industry that there would be no adverse impact of entering into the agreement.

"There is nothing to worry about the adverse impact of on India. We have taken necessary steps to boost India's and investment in the wake of emerging new architecture," she said in her address at the Confederation of Indian Industry's annual partnership summit here.

Sitharaman also said the real implementation of has a long way to go as till date, not a single member has got it passed through their parliament.

First Published: Fri, February 26 2016. 17:50 IST
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