FIEO welcomes decision taken by government on RCEP in national interest: FIEO

Ludhiana, November 5, 2019: FIEO has welcomed the decision taken by the Government on the RCEP in national interest.
In a statement today, Sharad Kumar Saraf, President, FIEO said that a vibrant manufacturing holds the key to exports. Duty free imports from China, which has economy of scale, and sitting on huge inventory and capacity could have jolted the manufacturing beyond recovery and thus crippling exports.
However, Saraf pleaded to make manufacturing competitive by reducing the cost of credit, bringing down logistics cost, rebating all state taxes and levies and addressing inverted duty structure. He suggested that the share of manufacturing in GDP should go up by 1 percentage point every year so that we increase its share to 25% in the next 10 years.
Meanwhile, the United Cycle and Parts Manufacturers Association (UCPMA) president DS Chawla has reacted on the latest development. He said, “UCPMA representation has been very well taken into consideration by GoI, which has decided not to sign RCEP”. He added the UCPMA thanked the Modi government for saving Indian MSMEs. “We also thank all for supporting us”, he concluded.
Also, the Apex Chamber of Commerce and Industry (Punjab) president PD Sharma has stated that Prime Minister of India Narendra Modi has taken a very bold decision to pull out of the Regional Comprehensive Economic Partnership (RCEP) generally known as F.T.A.(Free Trade Agreement). Major RCEPs were signed in the year 2010. It includes 16 countries of 10 ASEAN nations-China, Japan, South Korea, Australia and New Zealand. The Major RCEP with 10 ASEAN countries was signed in Jan. 2010. China also signed RCEP with 10 ASEAN countries on this date. Basically it was a wrong economic decision of government of India. China and ASEAN countries had been doing mutual business with each others for centuries. ASEAN countries use to supply unfinished products to China which exported it to develop countries like, Europe and America. With this arrangement China was almost free to sell goods to India through ASEAN countries without paying Import duty. Consequently China’s goods flooded in the Indian market. The current economic slowdown is partly to the flooding of such goods without paying Import duty.
“The job crises and economic slowdown have gone deep. Very unfortunately young persons are standing in lines seeking work under M.G. NREGA Scheme”, said Sharma, adding that the number of workers employed in the age group of 18-30 under M. G. NREGA scheme reached 7.07 Million in 2018-19 compared to 5.8 Million in 2017-18.
“There is another important aspect that needs policy attention A-2017 discussion papers by the NITI Aayog showed that about two thirds of income in rural area is now generated though non- agricultural activities”, he said.
Sharma added Government of India has taken a correct decision to the effect that India would ‘ From now on’ generally seek to sign trade pacts with only those countries with which it has trade surplus (unlike the RCEP Grouping ). It would explore the possibility of a trade pact with the U.S.A. and U.K. (after the BREXIT) and also resume negotiations with European Union (EU) for the proposed free trade agreement.

BJP hails Modi for not budging to international pressure on RCEP
Chandigarh: The Bharatriya Janata Party has hailed Prime Minister Narendra Modi for not succumbing to international pressure and announce opting out of RCEP – claimed to be the World’s largest free trade pact of 16 nations.
Tarun Chugh, the national secretary of the BJP, said that the Prime Minister who has always kept ‘India First’ this time also batted for the farmers, micro and medium industries and entrepreneurs. The Prime Minister rightly declined to be a part of the ‘Regional Comprehensive Economic Partnership’.
The Prime Minister’s announcement to opt out of RCEP in Bangkok has set the ball rolling for making India a 5-Trillion economy by 2024, Chugh said.
The BJP leader said that the due to the policies and decisions of the erstwhile Congress-led UPA governments, India has suffered hugely and the trade deficit touched new heights.
Chugh said, gone are the days when India succumbed to the pressure of international forces on economic and other issues. “India has done what is in the best interest of the country , its industry and trade,” he claimed.
MSMEs would gain hugely by this bold decision taken by Prime Minister Narendra Modi-led government, the BJP leader said.