Rajkot: Commerce and Industry Minister Piyush Goyal on Saturday said international business transactions will soon start in rupee currency as several banks from different countries are opening special Vostro accounts with Indian banks. The Reserve Bank of India (RBI) has approved 60 requests from correspondent banks from 18 countries, including the UK, Singapore and New Zealand, to open special Rupee Vostro accounts.
He said that the RBI is discussing the matter with the central banks of other countries. “We will soon see this rupee trading in international trade with many countries,” Goyal told reporters here.
Negotiations for FTAs with developed sectors in advanced stages
The minister further said that negotiations for free trade agreements (FTAs) with developed regions such as the European Union, the UK and Canada are in “advanced” stages. Groupings including the European Free Trade Association Free Trade Agreement (EFTA), the Gulf Cooperation Council (GCC) and the Eurasian Economic Union (EAEU) are also keen to initiate talks for a similar agreement with India. “The whole world wants a Comprehensive Economic Partnership Agreement with India,” the minister said.
Regarding the second phase of the production linked incentive scheme for the textile sector, he said that there has been a wide stakeholder discussion on the subject. “I am sure that very soon we will be able to finalize the outline of the plan and take it for approval at the highest level,” he said.
Indian textile exporters were facing loss of customs duty
Goyal said Indian textile exporters were earlier facing customs duty disadvantages in developed markets compared to countries like Bangladesh, but since the government is entering into trade pacts with regions like UAE and Australia, domestic exporters are able to push shipments. Will be able to. On promoting sustainability in the textile sector, Goyal said that the Ministry of Textiles has decided to set up an ESG (Environment, Social and Governance Commitment) task force. The task force will suggest ways to make the sector more eco-friendly and sustainable. The Ministry of Textiles has also launched a portal to promote the sale of handicrafts and handloom products.
On National Textiles Corporation, he said the feasibility of its units and other issues have been discussed with the finance ministry but no final decision has been taken so far. On pink bollworm affecting cotton crops at some places, the minister said they are in discussion with the agriculture ministry and scientists to develop pink bollworm resistant varieties.
On exports, Goyal expressed confidence that the USD 100 billion target for the textile sector would be achieved. He also said that working with the industry will help take the combined domestic and international economic value of the industry to US$250 billion. “It is possible. We will definitely achieve it,” he said. Goyal was here in Gujarat as part of the Saurashtra Tamil Sangamam organized in Rajkot under the ‘Ek Bharat Shreshtha Bharat’ initiative.
(With PTI inputs)
Also Read: Trade Agreement Between India, Malaysia Now Possible In ‘Indian Rupee’ | deet
ALSO READ: India unveils Foreign Trade Policy 2023, targets USD 2 trillion exports by 2030