India promises greater market access to neighbours

India has promised greater market access to its South Asian neighbours, including Bangladesh, by reducing its sensitive list of goods by twenty percent next month under the South Asian Free Trade Area (Safta).
“By next month, this will be a reality”, said Indian Commerce and Industry Minister Anand Sharma at the first meeting of South Asian Forum here on Thursday.
Items included in the sensitive list are not subject to the preferential tariff cuts and member-countries of the Free Trade Agreement have to continue to pay normal tariffs on these.
India maintains a sensitive list of 431 items for Least Developed Countries (LDCs) and 848 items for non-LDCs under Safta for which no duty-free concession is given.
Indian Prime Minister Manmohan Singh, during his recent visit to Dhaka, had announced duty-free and quota-free access to 46 textile items from Bangladesh.
Sharma said India's fulfilling its commitment of reducing tariff lines under sensitive list by 20% for all Saarc by next month will complete a critical requirement of Safta agreement signed by Saarc member countries.
“Time has come to take a call on reduction of barriers to trade. Safta is moving forward on the path of economic integration and India should give full support so that the region realises its full potential” he said.
With continued global economic crisis threatening the flow of investment from rich nations to poor and needy under-developed countries of Saarc, South Asian nations need to tap intra-regional trade and investment by giving greater market access and facilitating free flow of investment through lowering of tariff and non-tariff barriers, Sharma said.
“India's trade with Saarc stands at mere $13 billion at a time when our global trade has expanded to cross $600 billion. Indian companies have stepped out and engaged in foreign shores investing over $100 billion and more than 90% of this investment has been outside South Asia. Indian investment flows into Saarc has been around $10 billion.
“This clearly brings out the imperative of creating a more conducive investment climate, a more harmonious linkage between our industry bodies and a strong political commitment for an integrated South Asia” he said.
FICCI in partnership with the Indian Ministry of External Affairs (MEA) is hosting the first meeting of South Asia Forum. Being the first of its kind in South Asia, the meeting is supported by the MEA.