New Delhi, Mar 7 (KNN) The Process Plant and Machinery Association of India (PPMAI), which represents the Capital goods and Process Equipment Manufacturing and Exporting Industry in the country, has expressed concern at surge of imports especially of metals and capital goods from  countries including Korea, Indonesia, Malaysia and Japan with whom India has signed Free Trade Agreements (FTAs).

Expressing concern over the matter, Chairman of PPMAI, Yatinder Pal Singh Suri said "FTA coupled with lack of reciprocity is adversely hurting the steel manufacturers as well as the capital goods industry. FTAs are meant to increase bilateral trade.”

However, he stated that India's FTAs with ASEAN countries and Japan have only resulted in increasing our imports of metals and capital goods with either stable or declining exports leading to the rising trade deficit.

Suri pointed “Despite several steps taken by Government including imposing anti-dumping duties, countervailing duties, quality control and anti-circumvention measures but the problem of surge in imports especially stainless steel, finished capital goods and other metals persists.”

Excess capacity in China and FTA countries such as Japan , Indonesia and Korea and their ambition to sell at lower than domestic price levels due to zero duty advantage in Indian market is posing a stiff challenge to the domestic metal manufacturers and capital goods industry It has become a huge problem. Jobs are getting lost and causing tremendous disruption, added Suri.

He said "FTA should be a Level playing agreement and not a one way street as it is currently prevailing. Currently all FTA countries are taking full advantage by exporting metals as well as finished capital goods into India but they are not importing metals and capital goods.”

In such cases, “There has to be a quota system. We strongly propose that as long as the trade balance in a particular sector is in the range of +/- 30 per cent, it is fine but if the equation gets worse, the imports from FTA countries should not be duty free, demanded Suri.

"By allowing unlimited and unregulated access to Indian markets, we are actually killing potential for our domestic industry to grow and at the same time derailing the Make in India policy. To save our manufacturing industry in India we should have a fair and win-win agreement with these FTA countries”, he pleaded.