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Indian industry has huge role to play in std development: Cabinet secy
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Thursday, 17 April, 2014, 08 : 00 AM [IST]
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Ashwani Maindola, New Delhi
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fiogf49gjkf0d Ajit Seth, cabinet secretary, government of India, stated that Indian industry has an important role to play in the development of standards for the country.
He observed that it did not have a standard-driven culture and its manufacturing sector was accustomed to developing in an environment where standards have been lax. He called for appropriate legislation to be put in place to provide an instrument to notify standards.
Seth delivered the inaugural address at the Standards Conclave: Role of Standards in International Trade: Challenges Opportunities and Issues, organised by the Confederation of Indian Industry (CII) and the Ministry of Commerce and Industry recently.
He observed that internationally the role of standards had gained importance with the adoption of Sanitary and Phytosanitary (SPS) and Technical Barriers to Trade (TBT) Agreements during the Uruguay Round of the World Trade Organisation (WTO).
Seth felt that India needed to take a leading role in the identification and development of standards. This would help improve the competitiveness of Indian industries and help it to improve their export prospects.
In his address, Rajeev Kher, commerce secretary, Department of Commerce, pointed out that standards had effectively replaced tariffs in the international trade discourse.
He stated that development of rules had gained greater importance than tariffs. Countries around the world are developing higher standards and are designing products to meet these standards. He felt that the time had come for Indian Industry to do the same.
Kher highlighted the fact that different countries in Africa had upgraded their standards for various products, and many of these were now at par with developed countries’ standards.
He felt that Indian industry could find itself shut out of some of these markets if it does not enhance its quality.
The commerce secretary also spoke of the enclavisation of international trade with the creation of mega trading blocs like the Trans Pacific Partnership (TPP), the Trans Atlantic Trade and Investment Partnership (TTIP) and the Regional Comprehenive Economic Partnership (RCEP), which is leading to a paradigm shift in the trade regime.
The emphasis had moved away from tariffs, and these blocs would now focus on the creation of rules, regulations and standards. Kher felt that India needed to find a place in this new architecture.
He opined that the government and industry needed to be on the same page in terms of development of standards.
Kher felt that a comprehensive law needed to be formulated under which standards development could take place.
He observed that there was a need to mainstream the acceptance of standards even within the government of India and a consultative mechanism needed to be put in place to bring all stakeholders together while formulating standards.
Sunil Soni, director general, Bureau of Indian Standards (BIS), stated that India needed to greater advantage of the SPS and TBT agreements under the WTO.
Of the 18,000 notifications issued under these agreements from various countries, regulations issued from India numbered only 93.
Even these few were the topic of intense debate. This pointed to the need to put in place a sound regulatory environment in the country.
Soni observed that while BIS was the apex organisation for the formulation of standards in India, there were other organisations involved in this process as well. He felt that there was a need to develop synergy between BIS and these organisations.
Deep Kapuria, chairman, micro-, small and medium enterprises (MSME) Council, CII, and chairman, Hi-Tech Group stressed on the need to make compliance with standards affordable.
He felt that the high cost of compliance could lead to a large number of MSME not being able to export their products.
Kapuria stated that the enhancement of standards would not only boost India’s exports, but would also restrict inferior imports which are causing serious injury to the domestic industry.
Chandrajit Banerjee, director general, CII, was present at the meet.
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