Cryptocurrency to FTA: Nirmala Sitharaman discusses range of issues in US

Finance minister Niramala Sitharaman is currently on an official trip to the US. On Tuesday (Monday in the US), Sitharaman spoke on a wide range of topics ranging from free trade agreements to cryptocurrencies. 

Sitharaman said that the World Trade Organisation (WTO) needs to be more progressive and must give space to countries that have something different to say. She also said that India wants globalisation to be more transparent. 

On free trade agreements (FTAs)

While talking at the Peterson Institute for International Economics, Sitharaman said that India is in talks with UK, European Union and Canada for free trade agreements (FTAs). She said FTAs are being signed in "faster" way nowadays and that the India-UK FTA negotiations are "going on as we speak."

"Free Trade Agreements are being signed in a much faster way nowadays. We've just concluded one with Australia. Earlier we concluded with UAE, Mauritius and with ASEAN. We have extended quota-free and tariff-free regime to Least Developed Countries," she said. 

On globalisation  

Sitharaman said that India is not seeking to reverse the benefits of globalisation, but is asking that it be made more transparent. 

"It's not to say that we have to reverse the benefits of globalisation. It is more to say, make globalization more transparent," she said in response to a question.

"We have a big play. We also don't import final consumer goods, which we are capable of manufacturing. However, when you have price discrepancies or price competitiveness affecting your purchasing decisions, you end up buying those which you can produce because they come at a far more, cheaper rate," she said.

"So, Indians have always had this difficulty in having to come back to producing certain things which are your day-to-day domestic necessities, but you are unable to produce because you find cheaper imports coming or the very same requirement. But now we've seen that there is an opportunity which lies, one from the consumer point of view, that even within India, there's enough purchasing power. And many of these goods which can be produced in India will have a definitive large consumer base within the country," she added.

So, catering to the domestic market itself has become now attractive for many of those producers who wouldn't have produced such things which were otherwise available for cheap from outside, she noted.

On cryptocurrency

Sitharaman said that cryptocurrencies are a very important part of the discussion under India's G20 presidency.

"Given so many collapses and shocks in cryptocurrencies. We seek to develop a common framework for all countries to deal with this matter," she said in a roundtable meeting on the theme 'Investment opportunities for the long term: India on the Rise' with business leaders and investors.

It was hosted by industry body CII, US India Business Council and US Chamber.

The finance minister also highlighted India's robust digital public infrastructure such as Open Network for Digital Commerce (ONDC) and Account Aggregator platform, which have enabled small entrepreneurs to access credit and other digital services.

In a world full of post-pandemic challenges, she said that India offers policy certainty, skilled manpower, high digital tech adaption rate resulting in a host of opportunities for investment.

Sitharaman exhorted the participants to become part of India's exciting transformational journey towards greater prosperity, better standards of living for its citizens and higher returns for investors.

On WTO

Sitharaman said India wants the WTO to be more progressive and listening to other countries. She asserted that the WTO needs to give more space to the countries which have something different to say and not just hear.

"I would like the WTO to be a lot more progressive, a lot more listening to all countries, to be fair to all members," Sitharaman said.

"I, fortunately, unfortunately spent some time with the WTO in my capacity as a commerce minister of India between 2014 and 2017. It has to give more space to hear voices of countries which have something different to say and not just hear, but also somewhat heed because today's message for the WTO should be to have greater openness," she added.

"In fact, I'm not quoting, in the context of WTO, but it might be useful to recall the words of US Commerce Secretary (sic), Katherine Tai. She had recently spoken and I was very, very impressed, if I can use that word, about what exactly is the traditional trading approach. What exactly is liberalizing the market? What would it actually mean in terms of tariff reduction?" she said.

"It is true now, countries do look at it. It is a time when countries are looking at what extent to which you would want to have market liberalization. It has had cost repercussions for the US economy, and that's exactly what the US Secretary Commerce has said. And if that's something which the United States Commerce Secretary feels, I felt the same in 2014 and 2015. Probably my articulation was never getting a space in global media. But many of the global south countries do have the same feeling," she said.

"What exactly is this? How far is liberalization? To what extent tariff reduction? We in India for all the less developed countries, the global South, if you would ask them would have a similar opinion as the US Commerce Secretary. But in India, we've already extended to all the least developed countries, quota-free, tariff-free trading policy," she said.

(With agency inputs)