Calling on industry to respond to changing global trade architecture, commerce secretary Rajeev Kher warned Thursday that it will have to become globally competitive without the support of “subsidies and doles” to be able to take on its competitors in other markets.
“It is a challenge for us to become competitive in the sense of global competitiveness. We have to acknowledge that we have to become competitive not through the route of subsidies and not through the route of doles,” he said.
Emphasising that within 2-3 years the Indian industry will see a paradigm shift in the global trade, Kher said that implementation of Trans-Pacific Partnership (TPP) and Trans-Atlantic Trade and Investment Partnership (TTIP) will pose challenges for the industry as India is not a part of these pacts which are being negotiated.
“India has so far run on its competitive advantage of its products. (But) in the last few years, this competitive advantage has suffered and we have not yet began reviving it or improving it… If five major markets — the US, Mexico, Canada, Japan and Malaysia — get into a preferential trading arrangement for each other then who are you (India),” he said adding that the country has to “tighten our belts now and acknowledge the institutional architecture which is emerging”.