India to reduce tariffs under sensitive list: Sharma

September 8th, 2011 - 10:16 pm ICT by IANS  

New Delhi, Sep 8 (IANS) India will reduce the tariff line under the sensitive list by 20 percent by next month as required under the South Asian Free Trade Agreement (SAFTA), Commerce and Industry Minister Anand Sharma said Thursday.

“The time has come to take a call on reduction of barriers to trade. SAFTA is moving forward on the path of economic integration and India should give full support so that the region realises it full potential,” he said at the first meeting of the South Asia Forum here.

The minister also said that India has been bringing down the peak tariffs under SAFTA in a very transparent manner for imports from Pakistan and the peak rates would be 8 percent.

India has already allowed zero duty access for the South Asian Association for Regional Cooperation’s (SAARC) least developed countries, for almost 97 percent of the total tariff lines.

Sharma said that India is keen to engage more with Pakistan and develop deeper economic linkages. “That will give more depth and width to our relationship”.

India’s trade with SAARC stands at mere $13 billion at a time when its global trade has expanded to cross $600 billion, said the minister.

Indian companies have stepped out and engaged in foreign shores investing over $100 billion and more than 90 percent of this investment has been outside South Asia.

India investment flows into SAARC have been around $10 billion.

“This clearly brings out the imperative of creating a more conducive investment climate a more harmonious linkage between our industry bodies and a strong political commitment for an integrated South Asia,” Sharma said.

Related Stories

Tags: , , , , , , , , , , , , , , , , , , ,

Posted in Business |

Subscribe