Most challenging time for global trade: Prabhu

Kolkata: Holding that global trade is passing through "challenging times", Union Commerce and Industry Minister Suresh Prabhu on Saturday said the existence of World Trade Organisation (WTO) was under threat.

According to him, WTO is "a must" and in its absence, there will be chaos in the global trade.

"Today, it is the most challenging time for global trade... we never had such a challenging time. For the first time, the existence of WTO is under threat. People are questioning the accepted trading norms," he said at an event organised by Federation of Indian Export Organisations here.

Citing an example of "letter of credit", a prerequisite for exports, Prabhu said fundamentals of global trade are "under scrutiny".

"If you don't have WTO, not only India, every country will have a problem. We strongly feel WTO is a must because it guarantees certain rules and regulations to run global trade. There will be chaos if you don't have WTO."

Prabhu said the country was trying to make the global organisation strong.

He also said as part of its long-term aviation policy, the Central government is working on an integrated plan to transform India into an aircraft and allied components manufacturing hub.

"The aim is not only to create "millions of jobs" and boost the economy but also to position India as a global leader," the minister said while delivering the 2nd CII Suresh Neotia Memorial Lecture.

He said the government is working on a policy for aircraft components manufacturing. "We are already in discussion with the secretaries of key departments as well as international aircraft manufacturers, including Boeing and Airbus.

"We are creating a comprehensive Policy for 2035 in aviation — a sector in which India has been clocking 20 percent growth in the past few years. It is a sector where India can play a leadership role in the world," he told the industry leaders.