India is ready to give preferential duty concessions on all products to Saarc members to give a boost to free trade in the region, Union Minister Nirmala Sitharaman said on Tuesday.
At present, India gives zero-duty access for least developed countries (LDCs) of South Asian Association for Regional Cooperation (Saarc) for 100 per cent of tariff lines, except for alcohol and tobacco.
"For <g data-gr-id="31">non</g>-LDCs also, India has generously allowed preferential trade access for 90 per cent to the total tariff lines. We are prepared to go to 100 <g data-gr-id="32">per cent</g> level in terms of the SAFTA (South Asia Free Trade Agreement) roadmap agreed by India with Pakistan in September 2012," Commerce and Industry Minister Nirmala Sitharaman said here.
She was speaking at the 'South Asia Economic Conclave' organised by CII. The minister said that four of the Saarc countries, including India, have put forward a collective vision to achieve preferential trading arrangements in almost 100 <g data-gr-id="27">per cent</g> of the tariff lines by 2020.
"I am confident that the consensus can be achieved for a defined timeline for the 100 <g data-gr-id="29">per cent</g> tariff liberalisation with special and preferential treatment for LDCs and vulnerable economies. I reiterate that India is willing to take asymmetric responsibility towards achieving this goal," she said.
The regional trade among Saarc members, which include Pakistan and Afghanistan, is well below the potential even as the members signed the <g data-gr-id="28">SAFTA</g> pact in 2004 and trade liberalisation started from 2006. Lack of consensus among key countries of the region has been a roadblock.
As part of measures to boost trade among members, India granted the 'Most Favoured Nation' status to Pakistan in 1996 but Pakistan is yet to reciprocate to that.
Talking about the proposed Saarc Development Bank (SDB), Sitharamn said the current fiscal constraints of the South Asian countries are "impediment in raising enough equity, capital for South Asia development Bank".
"But it is my view that we must evolve a roadmap for such SDBs even if it starts with modest equity contribution," she said. The <g data-gr-id="30">Saarc</g> Ministerial in Bhutan in 2014 stressed the need for a regional development bank.
"This would be able to focus more on infrastructure projects and their funding requirements for the entire region and target consortium lending by joining with ADB, World Bank and also with AIIB," she added.