India willing to cut industrial tariffs

New Delhi, July 16

The Union Commerce and Industry Minister, Mr Kamal Nath, on Wednesday said that India would be willing to consider industrial tariff cuts in some industries, instead of greater access to the country’s robust services sector.

The Minister was addressing a news conference on the eve of the mini-ministerial meeting of the World Trade Organisation (WTO), which gets off early next week in Geneva.

On industrial tariffs or non-agricultural market access (NAMA), Mr Nath noted that the Government might consider lowering tariffs on some segments such as gems and jewellery against the demand for greater access to its services industry which has a share of 55 per cent in the country’s GDP.

India has on its own liberalised its services sector in recent years by lowering the sectoral cap on foreign investment. The autonomous liberalisation could not be “pocketed” by other countries without substantial market access in return, in areas of India’s strength, he added.

On services, he said India was ready to signal new sub-sectors and making improvements in sub-sectors already offered. But these signals would be contingent on the developed countries addressing India’s interest in mode-1 (cross-border trade) and in mode-4 (movement of natural persons as service providers). As the UPA Government is seeking a trust vote on July 21 and 22, Mr Nath said, “I have designated the Commerce Secretary, Mr Gopal K. Pillai, to represent me at the meeting, after getting the assent from the WTO”.

Taken from Business Line

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