World must avoid protectionism that hinders trade: Commerce Secretary

Commerce Secretary Sunil Barthwal on Thursday said that the world needs to avoid the kind of protectionism which creates more barriers that hinder trade.

 

He called for mutual recognition agreements (MRAs) to facilitate trade. “I think the world needs to avoid any kind of practice which creates more trade barriers, technical barriers, and hinders trade,” Barthwal said at an industry event organised by the Confederation of Indian Industry (CII).

 

The Secretary’s comments came against the backdrop of a shift in the United States' (US) trade policy towards a more protectionist stance, along with the threat of a renewed trade war.

 

 

He also said that India should not be "too much bothered" about imports, as long as the share of exports continues to grow, and urged against adopting the "mercantilist approach"—which means not worrying about trade balance and rising imports.

 

“Because if the Indian economy is growing at 7 per cent and the world is growing at 3-3.5 per cent... then obviously India will be requiring more consumption, more imports, and let me tell you that the role of imports in exports is also very, very important,” the Secretary said, adding that imports of raw materials and intermediate products are essential.

 

Barthwal also said that developed countries are confused about the concept of migration and mobility. If Indians or Indian companies are setting up bases in other countries, then mobility of professionals needs to be ensured, he said, adding that there is a need to build a narrative that mobility is essential for the growth of the services sector as a whole.

 

“In fact, it is also good for the developed world that they understand this concept of mobility and do not confuse it with the concept of migration,” he said.

 

He further said that the services sector is taking prominence in the country's trade, as it accounts for 43.8 per cent of India's total exports, surpassing the global average of 24.7 per cent. Barthwal stressed the importance of education, particularly in STEM (science, technology, engineering, and mathematics), as a critical enabler for growth in the services sector, and called for greater investment in primary to higher education and digital literacy to harness its vast talent pool.