Will the Minister of COMMERCE AND INDUSTRY be pleased to state:-

(a) whether Government propose to enter into a free trade or a similar agreement with China that would give Chinese companies access to Indian market;
(b) if so, by when that is likely to be done; and

(c) whether Government have evaluated the implications of such an agreement on India’s domestic manufacturing industry and its exports; if so, the details thereof and how its adverse effects; if any, are proposed to be addressed?

ANSWER

THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY
(SHRI JAIRAM RAMESH)

a) to c): In pursuance to the recommendations of the JSG a Joint Task Force to study in detail the feasibility and the benefits that may derive from an India-China RTA, was constituted. Both sides conducted separate study to find out implications of such an agreement. In its sixth meeting held on 21st and 22nd October, 2007, the JTF finalized its report. According to the report of the feasibility study an India-China RTA will be mutually advantageous. During the Prime Minister’s visit to China the two Prime Ministers agreed to entrust to the two Commerce Ministers to examine the recommendations of the JTF on RTA. The Eighth Session of India-China Joint Economic Group at Ministerial level is to be held on April 1-2, 2008 in Beijing.