By Us President Donald
PTICII President Rajiv Memani
Newly appointed CII President Rajiv Memani on Thursday stressed the need for a “balanced and reasonable” Free Trade Agreement (FTA) between India and the US in its initial stages, saying politically sensitive issues could be addressed later.India is currently negotiating an FTA with the United States, with a Commerce Ministry team in Washington aiming to reach a preliminary deal before the July 9 deadline set by US President Donald Trump for the imposition of higher tariffs.”We are expecting a balanced, reasonable FTA which will be done in tranches鈥 Those areas which are more tricky, which require more consultation, have greater political ramifications, maybe dealt with later on,” said Memani, quoted by PTI.India has expressed reservations about opening access to sensitive sectors such as agriculture and dairy. Concerns include protecting farmer interests and religious sensitivities tied to the dairy industry.Memani acknowledged the government鈥檚 preparation and engagement with stakeholders. 鈥淚 do know that the level of preparation that the Ministry of Commerce has done鈥 the engagement that they have had with various industries. In Ministry of Agriculture, that has been very limited… I feel very confident that the challenges鈥 will be adequately addressed,鈥 he said.Live EventsHe also noted that while not all parties will benefit equally from the deal, the concerns of Indian industry have been communicated.CII President on Foxconn rowCommenting on reports that Foxconn has asked Chinese engineers to return from its iPhone plant in India, Memani suggested it could be geopolitically motivated. “When a Quad meeting is happening, there is some action that we see from some countries, and there are messages in a way,” he said. The Quad includes India, the US, Japan, and Australia.Memani also raised alarm over China’s tightening of rare earth magnet exports, calling it a “big concern” for India鈥檚 auto and electronics sectors. He said some auto companies were already hinting at lower production guidance due to supply constraints.”In auto, I would say a concern is more serious than what’s come out till now鈥 definitely, there is a worry, concern, much more than auto in some other sectors as well,鈥 he added.India imports more than 53,000 metric tonnes of rare earth magnets annually. China controls over 60% of global rare earth mining and nearly 90% of refining. The country鈥檚 new export licensing rules have further strained global availability.Memani said India must examine its supply chain vulnerabilities, including its heavy dependence on China for active pharmaceutical ingredients (APIs).(With inputs from PTI)(You can now subscribe to our Economic Times WhatsApp channel)
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(You can now subscribe to our Economic Times WhatsApp channel)Read More News onIndia US FTACII President Rajiv MemaniFoxconnChina rare earth exportsFree Trade AgreementIndian agriculture and dairy concernsQuad meetingactive pharmaceutical ingredientsChina rare earth magnetsCII(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online….moreless
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