India Stresses Need To Curb Import Growth

Indias delegation at the Geneva talks on import restrictions has dropped the argument that the countrys balance of payments is too precarious for the domestic market to be opened up. Instead, the team has taken the stand that India needs to exercise control over its rapid import growth.

Consequently, the delegation yesterday requested the World Trade Organisation (WTO) to grant India nine years to phase out import restrictions.

The Indian delegation, led by commerce secretary P P Prabhu, told a WTO balance-of-payments committee that India needed time to ensure a smooth economic transition to the new WTO regime.

Indias proposals were opposed by industrialised countries, which said the nine-year period sought by India was too long. Countries like Australia and New Zealand particularly opposed the long phase-out period sought for agricultural products.

 

Negotiations over the proposals are expected to continue today. However, the industrialised nations are staunchly opposed to Indias proposals as they fear that other developing countries could also adopt the same position and ask for long phase-out periods.

India has asked for a nine-year schedule to phase out import curbs on farm products and food products. Products in this category include tea, various types of fruits, cereals, oil cakes, palm oil, sunflower oil and other food products. Certain textiles have also been included in this category.