Mobility, not migration, key in FTA negotiations: Commerce Secretary

Commerce Secretary, Sunil Barthwal

India is prioritising the mobility of professionals over migration in its Free Trade Agreement (FTA) negotiations, ensuring recognition of qualifications and facilitating smoother access for Indian professionals abroad, Commerce Secretary Sunil Barthwal said on December 12.

"In FTA negotiations, the important aspect is not migration, but mobility of professionals. Mobility should not be confused with migration," Barthwal clarified. He emphasised that ensuring mobility assurances and mutual recognition of qualifications by importing countries are critical to fostering growth in India’s robust services sector.

The commerce secretary was speaking at the Global Economic Policy Forum 2024 organised by the Ministry of Finance and the Confederation of Indian Industry (CII).

Focus on Services Exports

The ongoing FTA negotiations with the European Union (EU) also came under focus. Barthwal pointed out that while India is highly competitive in services exports, the EU seeks a balanced agreement covering both goods and services.

India’s services sector is a cornerstone of its economy, contributing 43.8 percent of total exports, significantly higher than the global average of 24.7 percent. Highlighting the sector's growth trajectory, Barthwal noted, “The growth rate in the services sector is more than 7 percent. Our services exports may soon overtake merchandise exports or reach 50 percent of total exports.”

He also emphasised the strength of India’s STEM (Science, Technology, Engineering, and Mathematics) professionals in driving economic and export growth. "For our GDP and exports to grow, we need to focus on digital literacy. Within services, $4.25 trillion worth of services are digitally delivered. India, if it needs to have a growth story, must focus on the services value chain," he said.

Avoiding Protectionism

Barthwal underscored the essential role of trade in GDP growth, revealing that 45.8 percent of India’s GDP is derived from trade, compared to 38 percent in the US and 25 precent in China. "Without the growth of trade, GDP cannot grow. Supply chain disruptions, like the Suez Canal blockage, highlight the need for resilience," he observed.

While advocating for growth through trade, Barthwal cautioned against protectionist policies and trade barriers. He stressed the importance of imports, particularly for sourcing intermediaries and raw materials needed for exports. "If India grows at 7 percent, it will need more consumption and more imports. The role of imports is important. We should avoid a mercantilist approach and not bother too much about balance of trade and imports," he remarked.