New Delhi, April 10 (PTI): The government today favoured a “cautious but balanced approach” on free trade agreements, saying the country cannot afford unbridled liberalisation of imports in sensitive areas like agriculture and textiles.

“FTA brings macro benefits for the country but with some micro pains for certain sections, which have to be dealt with cautiously,” said minister of state for commerce Jairam Ramesh. A balanced approach is needed keeping in mind the long-term competitive advantage, he added.

At the same time, certain decisions cannot be only economic as free trade agreements (FTAs) are being looked at as an instrument of political influence and as means of telling the world that India has changed, he said at an interactive session with the Forum of Financial Writers.

“We cannot import sensitive items substantially,” he said and added that it was regrettable that in a country like India 45 per cent of the edible oil requirement is imported.

If the technology mission on edible oil started in 1987-88 was pursued, the country would have been self-sufficient in edible oil by now, he said. He emphasised the need for achieving self-sufficiency in such areas.