Severe differences have surfaced within the Government over India's approach of tracking free trade agreements with China.
A few ministers have authorized Congress President Sonia Gandhi's vision on this treaty, particularly with a view to their brunt on agriculture.
Gandhi had raised the subject two times, firstly in a letter to different economic ministers on 23 March 2006 and thereafter in a communiqué to Prime Minister Manmohan Singh on 11 April 2006.
Prime Minister responded to Sonia on 20 April 2006, upholding the case for regional economic partnerships. Giving importance to the advantages of economic collaboration with the Association of South East Asian Nations (Asean), he had said sufficient protections were being placed for the enduring dialogue.
Singh had also pointed out that universal understanding had revealed that regional economic co-operation was favorable in generating income and increasing employment.
Singh said further FTA's would be signed while addressing an Asian Development Bank conference in Hyderabad last week. 'We have accomplished FTAs with Saarc, Singapore and Thailand. We are functioning on related planning with Asean, China and South Korea.'
On Monday, a government official appeared hitting back at the policy when he heard that a pact with China would be 'suicidal for the Indian industry.'
The ministry of external affairs is approaching for an FTA with China. A decision (to sign an FTA with China) will be solely political and has nothing to do with economics.
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