Report highlights that India’s trade strategy of forging FTA would boost bilateral trade and create new opportunities in digital trade.
About FTAs
- FTAs are arrangements between two or more countries or trading blocs that agree to reduce or eliminate customs tariff and non-tariff barriers on substantial trade between them.
- It covers trade in goods (like agricultural or industrial products) or trade in services (like banking, construction, trading etc.) and also areas like intellectual property rights (IPs), etc.
Benefits of FTAs
- Easier access to foreign markets: By eliminating tariff and non-tariff barriers.
- Opportunities to Small and Medium Enterprises (SMEs): Tariff concessions give opportunities for exports of SMEs’ products.
- Others: Address behind-the-border barriers impeding trade, encourage investment; improve the rules affecting e-commerce, promote regional integration, etc.
India and FTAs
- India has signed 13 FTAs in the last five years with its trading partners like Mauritius, UAE, Australia, etc. to boost its export oriented domestic manufacturing (SBI Report).
- Example: India ASEAN Trade in Goods Agreement, South Asia Free Trade Agreement, etc
- It is currently negotiating FTAs with the UK, Canada, and the European Union.
Other Key highlights of the Report
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