Kamal Nath for more regional trade deals

Commerce and Industry Minister Kamal Nath today said setting up regional trade blocks were crucial for the development of India's foreign trade, otherwise, the country would be isolated in the global arena.

"Over 60 per cent of world trade is through regional trade blocks. We must engage in trade on a regional basis. Out of a 100, 4 or 5 sectors will be hit because of this. But the rest 95 will gain," Nath said at an interactive session organised by the Confederation of Indian Industry (CII).

He said the government was looking at correcting the inverted duty structure for certain commodities.

The government was trying to learn the nuances of such trading from the first few trade agreements with neighbouring countries like Bhutan, he added.

Nath said the changing map of India during the next 10 years would affect trade in a big way.

"Improved communication facilities with the neighbouring countries, and the quadrilateral rail project, ensuring circular goods movement, will drive the policies," he said.

The government would also have a special purpose vehicle to stabilise financing of infrastructure, he added.

On the issue of competitiveness in the domestic industry, he said, as India engaged more with the global economy, industry would learn to be more competitive, at both domestic and international levels.

Emphasising the need for a sync between agriculture and commerce , he said, "Creation of disposable income for 600 million people is really crucial. It is going to change the consumption pattern completely."

On the issue of high agriculture subsidies of the developed countries, Nath said as long as such subsidies and higher tariff on imports were not reviewed, they would not be implemented in India.