On April 22 in Gujarat’s Rajkot, the Commerce and Industry Minister, Piyush Goyal, expressed optimism that traders would soon be able to settle foreign trade in the rupee currency since multiple banks from various countries have opened special Vostro accounts with Indian banks.
The Minister was in Rajkot, to attend the Saurashtra Tamil Sangamam. The event is being conducted under the ‘Ek Bharat Shreshtha Bharat’ Initiative.
Sixty requests have been approved by the Reserve Bank of India(RBI) from correspondent banks in 18 countries, including the United Kingdom, Singapore, and New Zealand, to open Special Rupee Vostro Accounts (SRVAs).
Piyush Goyal said that the RBI is discussing settling foreign trade in the rupee currency with the central banks of other countries. He told reporters, “We will soon start seeing operationalisation of this rupee trading in international trade with several countries”.
He also stated that free trade agreements (FTAs) with established regions such as the European Union, the United Kingdom, and Canada are in “advanced” stages.
The Minister said, “The whole world wants to have a comprehensive economic partnership agreement with India”.
He stated that significant stakeholder discussions had taken place on the second phase of the production-linked incentive scheme for the textile sector.
On the second phase of the production-linked incentive scheme for the textiles sector, he said extensive stakeholder discussions have happened.
He added, “I am quite confident that soon we will be able to finalise the contours of the scheme and take it up for approval at the highest level”.
Goyal stated that Indian textile exporters previously faced customs duty disadvantages in developed markets compared to countries such as Bangladesh. Still, domestic exporters can push shipments as the government signs trade treaties with regions such as the UAE and Australia.
The Minister said that the Textiles Ministry has agreed to establish an ESG (environmental, social, and governance commitments) task force to promote sustainability in the textile sector. The task force will play an important role in giving suggestions to make the industry more environment-friendly and sustainable.
The Ministry has also launched a portal to facilitate the sale of handicrafts and handloom products.
When speaking about the viability and other issues of National Textiles Corporation with the Finance Ministry, Piyush Goyal said the final decision still needs to be taken.
The Minister is in discussion with the Agriculture Ministry and scientists to develop pink worm-resistant varieties, as these pink worms are creating havoc by affecting cotton crops in certain places.
On exports, the Minister is confident about achieving a 100-billion USD target for the textiles sector.
Piyush Goyal said he is working with the industry to take the combined domestic and international economic value of USD 250 billion. He added, “It is possible. We will definitely achieve that”.
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