The Centre will review Free Trade Agreements (FTAs) in the chemical and petrochemical sectors that are considered to “unduly favour” imports, said Union Minister of State Anupriya Patel in Ahmedabad Tuesday.
“We will be looking at old FTAs that are no longer good for the industry. They will be reviewed. Meanwhile, we are also trying to find better markets for Indian products as well as expanding the basket of Indian products for export,” she said after a meeting with leaders from the industry.
She was in Ahmedabad as part of her first leg of the promotional tour for the 13th Biennial International Exhibition and Conference on Chemicals and Petrochemicals to be held in October.
At the event, FICCI National Chemical Committee Chairman Deepak Mehta claimed that the FTAs have made almost “near-zero duty” product inflow from Southeast Asia into India. “We should have a relook so that Indians get a fair share of the market,” he said.
The MoS for Chemicals and Fertilizers said tariff rationalisation was a major issue raised by stakeholders and that she would take it up with the Finance ministry. “The government would prioritise the protection of the domestic industry from cheap and low quality imports ,” she said.
Patel also hailed Gujarat’s contribution to India’s industrial landscape, especially in the chemicals and petrochemical sectors. “Gujarat is the leader with a 62 per cent share of India’s petrochemical production, 53 per cent share of chemical production and 45 per cent of the pharma production. The state also accounts for 41 per cent of the chemical and petrochemical exports,” she said.
Expounding on the same, Department of Chemicals and Petrochemicals Secretary Nivedita Shukla Verma highlighted Gujarat’s leadership in chemical and petrochemical production and exports in India. “Seventy four per cent FDI is permitted in India’s chemical and petrochemical sectors, leading to substantial investments in 2022–23. Three PCPIRs (Petroleum, Chemicals and Petrochemical Investment Regions) have attracted investments worth Rs 1.5 lakh crore and have provided employment to 3.7 lakh people. Specifically, in Gujarat’s PCPIR (Dahej), around Rs 1.25 lakh crore has been invested, generating jobs for 2.5 lakh people,” she said.
