Imports not a concern as long as exports continue to grow: Commerce Secretary

India should not be overly concerned about imports as long as the share of exports continues to grow, commerce secretary Sunil Barthwal said Thursday.

He also said that the world needs to avoid protectionism, which creates more trade barriers and hinders movement of goods.

Emphasising that one needs to avoid a mercantilist approach and should not bother too much about trade balance and imports, Barthwal said: "Because if the Indian economy is growing 7% and if the world is growing at 3-3.5% rate of growth then obviously India will be requiring more of consumption, more of imports and let me tell you that the role of imports in exports is also very, very important".


Barthwal was speaking at the Global Economic Policy Forum organised by the Confederation of Indian Industry.

"As long as we are able to improve our exports share, we should not be too much concerned about imports and that is what I feel that we need to avoid," he said, adding that imports of raw materials and intermediate products are essential.

Migration vs mobility

The secretary said that developed countries are confused about the concept of migration and mobility.

This is crucial as mobility of professionals needs to be ensured if Indians or Indian companies are setting up bases in other countries. Mobility is India's key ask in its free trade agreement negotiations.

"And that is our argument that we are not asking for migration. We are asking for mobility," Barthwal said, adding that it's important to build a narrative that mobility is essential for growth of the services sector as a whole including professional services.

The secretary called for more mutual recognition agreements to enhance services trade and cautioned countries against protectionist measures and raising trade barriers.