India treads the path of free trade agreement to boost exports

India is moving towards bilateral trade agreements to strengthen the domestic economy by increasing exports to the global market. In addition to signing new agreements with several countries, it also continues to negotiate.

After a decade of skepticism about free trade agreements, India is signing a series of new deals with several countries to lower trade barriers, remove tariffs and ensure preferential access to global markets, a BBC report said.

India implemented an integrated economic partnership with the United Arab Emirates (UAE) earlier this year.

advertisement

An ambitious trade deal signed with Australia. It promised to cut rates by 85 percent. In addition, negotiations are progressing to sign a Free Trade Agreement (FTA) with the UK and the European Union (EU).

India will gain market advantage by exporting various products and services under these agreements. These products and services include textiles, automotive, pharmaceuticals, labor exports, intellectual property enforcement and data protection.

In a statement last week, the UK said Indian and British officials are working intensively to complete most negotiations for a comprehensive and balanced free trade agreement by October 2022.

Last month, Indian Commerce Minister Piyush Goyal said: ‘The resumption of FTA negotiations with the EU after a long wait reflects a new India. Someone who wants to relate to the developed world as a friend from a position of justice. ‘

India’s renewed interest in free trade agreements indicates that the country has abandoned a decades-long fear of trade liberalization. In 2019, India withdrew from the much-discussed Regional Comprehensive Economic Partnership (RCEP). But seven long years went into this discussion. The agreement between China and 14 ASEAN countries was seen as the largest trade deal in the world. Delhi was concerned that the deal would cut tariffs on imported goods by 80 to 90 percent and increase the trade imbalance with China. In this, domestic producers will compete with foreigners.

According to NITI Aayog, the Indian government’s think tank, the signing of trade agreements with Japan, South Korea and other ASEAN countries has increased imports more than exports. As a result, performance with commercial partners was not favorable. So right now India wants a fair and balanced FPA with partners. Piyush Goyal: ‘The aim is to focus less on collaboration than on competition. Millaya Embroideries from Mumbai makes clothes for global fashion brands. Their clients include Dolce, Gabbana and Emporio Armani. But manufacturers now face double taxation when importing raw materials from Europe and exporting finished products to the same continent. Entrepreneurs said Indian clothing companies are losing competition to countries like Vietnam. Because the country recently approved the free trade agreement with the EU.

Leave a Reply

Your email address will not be published. Required fields are marked *