(a) whether the Union Government proposes to give duty free market access to some of
the neighbouring countries;
(b) if so, the names of such countries and the nature and extent of market access being
granted to them; and
(c) the likely impact of such access on the Indian Industry and Trade?
MINISTER OF THE STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY
(SHRI JAIRAM RAMESH)
(a) Yes, Sir. During the Fourteenth SAARC Summit held in New Delhi on 3-4 April
2007, India announced its decision to allow duty free access to India to the Least
Developed Countries (LDCs) of SAARC which are signatories of the Agreement on South
Asian Free Trade Area (SAFTA), before the end of this year.
(b) These LDC countries are Bangladesh, Bhutan, Maldives and Nepal. Afghanistan
which was inducted as a member of SAARC during the Fourteenth SAARC Summit would also
be an LDC and signatory of SAFTA after completing the required formalities. In terms
of the phased Trade Liberalization Programme of SAFTA which has become operational from
1st July 2006, India as a Non-Least Developed Country (NLDC) of SAARC and signatory of
SAFTA, had already decided to reduce tariffs to zero percent for SAARC LDCs, except on
the items kept in the Sensitive List, by 31.12.2008.
(c) With the present decision India would complete SAFTA TLP for LDCs one year in
advance. India has already been giving market access to Nepal and Bhutan as per the
bilateral Trade agreements signed with these countries. Except Bangladesh the export
potential of Maldives and Afghanistan which has become new member of SAARC is not
significant. Further, SAFTA tariff concessions for LDCs would exclude those items kept
in the Sensitive List of India under SAFTA. The present decision is therefore not likely
to have any serious impact on Indian industry and trade.