The Commerce and Industry Minister, Mr Anand Sharma, said the Government’s commitment to liberalise multi-brand retail trade is independent of the European Union’s demand for greater market access in that sector in India through the Free Trade Agreement (FTA).
The Minister also said on Monday that it was “very important” for New Delhi that the proposed India-EU FTA gives India’s services sector better market access in the EU, and ensures freer movement of professionals including from the IT sector.
Mr Sharma’s comments come a day ahead of his meeting with the EU Trade Commissioner, Mr Karel De Gucht, to take stock of the progress in the FTA negotiations.
Already 14 rounds of talks have been held and the 15th round began in Brussels on Monday.
Mr Sharma was talking to reporters on the sidelines of the Global India Business Meeting organised by Horasis (an international organisation), and among others, the Indian industry body FICCI.
He said the Government had only ‘paused’ – and not ‘reversed’ – the decision to allow 51 per cent foreign direct investment (FDI) in multi-brand retail due to partisan politics, adding that it has reached out to stakeholders to arrive at a broad-based consensus on the issue.
However, he made it clear that the Government policy on retail trade is not part of the India-EU FTA talks.
“When we negotiate an FTA, we don’t negotiate national policies. Anything which is an executive or legislative decision of a sovereign state is not included in the (FTA) negotiations,” he said, adding, “We do not make policy decision of Governments integral to (FTA) negotiations nor do we demand it.”
INDIA IS DATA-SECURE
On the services sector negotiations, he said an issue is whether India is a data-secure country. Insisting that India was data-secure, Mr Sharma said otherwise over two-third of the Fortune 500 companies would not have set up their offices and Research and Development centres in India.
He added that on India’s part, it recognises the EU’s interests on Geographical Indications, lower duties on wines and spirits as well as on automobiles.
The Minister said the negotiators have made substantial progress on all aspects of the FTA, adding that he was hopeful that it will be completed soon.
On the furniture major Ikea’s plans to invest Rs 10,500 crore in single-brand retail in India, he said it was a confirmation of the continued confidence of investors in India’s economy.
“This is the third such application in single brand retail. I expect many more such announcements and more investments to come to India,” he said.