Ready for any outcome of trade deal with US: CII
What's the story
Rajiv Memani, the President of the Confederation of Indian Industry (CII), has said that the Indian industry is ready for any outcome of the proposed bilateral trade agreement with the United States. He stressed that businesses shall not pursue deals that compromise national interests. In an interview with ANI, Memani praised the Centre's extensive consultation process with industry stakeholders before positioning India in trade negotiations.
Trade deal stance
No compulsion for trade deal at any cost
Memani emphasized that there is no compulsion to finalize a trade deal at any cost. He said, "There is no doubt that India will only do this deal when it is in India's interest and America's interest." He further added, "Until it is not in the interest of both countries, this deal will not happen. There is no compulsion in this regard."
FTA conditions
Industry's support for FTA
Memani outlined the conditions under which industry would support a Free Trade Agreement (FTA). He said, "If you ask industry whether they want this FTA on favorable terms and if we get relatively better terms compared to other countries, then industry desires this FTA." The potential benefits of an FTA are significant, especially in terms of tariff reduction.
Strategic implications
Some sectors may face challenges
Memani also highlighted the broader strategic implications of an FTA, saying it sends a message that both nations are ready to work together. He acknowledged that certain sectors could face challenges if the trade deal does not materialize but emphasized industry's commitment to national interests. "It is certain that some sectors and some industries will face difficulties, but industries do not want to work in a way that harms the country," he said.
Trade dynamics
Mexico likely to be major beneficiary
Memani claimed that Mexico would be the major beneficiary if India fails to secure favorable terms, with some gains for Vietnam as well. The textiles and garments industry could face challenges due to Vietnam's existing advantages.
Long-term view
Trade agreements are a long game, says Memani
Memani cautioned against hoping for immediate benefits even if a deal is concluded, calling trade agreements "a long game." He stressed that both countries would have to make adjustments to maximize benefits. "Many American companies may also invest in India to export from India. Indian companies will also have to focus on their competitiveness," he noted, hinting at possible government reforms and support measures for industries.