“Make sure you are not overtly dependent on any one or two geographies in your business. This is a good wake up call in your interest and this will hold you in good stead for many many years to come,” he said, asking the industry to focus on faster indigenisation and to make businesses resilient to supply chain shocks.
The union minister asked businesses to move from “assembled in India” to “designed, engineered and manufactured in India”. “Prime Minister (Narendra Modi) has given a clarion call to countrymen and women and it is time for a collective action,” he said at CII’s annual business meeting.
Goyal also called for faster adoption of electric vehicles (EVs) as it will help cut the country’s oil bills massively. Modi has appealed to citizens to reduce petrol and diesel consumption, by using metro rail services in cities, carpooling, increased use of EVs, utilising railway services for parcel movement, and working from home to conserve foreign exchange amid the ongoing conflict in West Asia.
Goyal also said the Prime Minister has not asked people to stop business travel and has, instead, called for curbing consumption and leisure expenditure. He added that artificial intelligence should not be viewed merely as a cost-cutting tool but as an instrument for business expansion, efficiency and market growth.
CEPA with Oman expected to kick in from June 1; Chile FTA hinges on critical minerals deal
Trade AgreementsHe also said the Comprehensive Economic Partnership Agreement (CEPA) between India and Oman is expected to come into force from June 1. The pact was signed last December.
The Oman delegation is in India to discuss ways to boost trade and investments. The agreement will provide duty-free access to 98% of India’s exports-including textiles, agriculture and leather goods-in Oman. On the other hand, India will reduce tariffs on Omanese products such as dates, marbles and petrochemical items.
Goyal said a good free trade agreement (FTA) can be concluded with Chile if India gets a favourable deal on critical minerals and mining. He has held a meeting with the south American nation’s foreign affairs minister Francisco Perez Mackenna here along with members of the Chilean delegation. India and Chile implemented a preferential trade agreement (PTA) in 2006 and are now negotiating to widen its scope for a CEPA.
The minister remarked that trade pacts with Japan, South Korea and ASEAN nations were signed and implemented during the Congress regime, with which he said the Indian industry is not happy. He added that while imports from these regions are burgeoning, India’s exports are almost flat. “Trade deficit is going by leaps and bounds. So it’s time that we started taking action to get good quality stuff. I would urge you to take the message of quality seriously. Do not be penny-wise and pound-foolish.”