| "FTAs need to evolve into agreements with bigger dimensions in this fast changing market scenario. We are keen to include segments like services and technology in FTAs India will now work on," said Commerce and Industry Minister Kamal Nath at a CII session on "Look East policy: Question of business". |
| According to Nath, east is the place to be today, with about 70 per cent of foreign reserves being in Asia now. "This has forced the world to firmly fix Asia, that has now emerged as the world's biggest trade catalyst, on its radar." |
| As India seeks a second coming for its manufacturing sector, the minister said it must necessarily develop closer linkages with countries such as Thailand, Malaysia, Indonesia, Japan, China, Singapore and Korea. |
| About 45 per cent of India's external trade is with Asean countries and is expected to rise further. Also, India is one of the biggest investors in the Asean and Asia region, said the minister. |
| India's bilateral trade with Asean grew to $20 billion last financial year from $4 billion a decade ago and with China, to $15 billion from $1 billion in the same period, according per official data. |
| Commenting on India's trade ties with China, RS Seshasayee, the incoming CII president, sought clarity on India's political engagements with China. "China is not a market economy and thus, political engagements are bound to drive economic engagements," said Seshasayee. |
| Nath stressed that to achieve a 12 per cent gross domestic product growth target, India needs to work on region and sector development. |
| "Till date, our focus has been on urban-centric growth. We did not know what to do for our hinterlands. This is why the manufacturing sector contributes 18 per cent to the GDP and the agriculture sector, which involves 65 per cent of our population, contributes a mere 2.3 per cent. An increase in focus on agriculture will eventually help achieve overall growth," said Nath. |
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