Modi government is working on FTA utilization plan
What's the story
The Indian government is working on a strategy to maximize the benefits of free trade agreements (FTAs) signed with developed countries, including the UK, EU, US, UAE and Australia. Since 2021, India has signed FTAs with Mauritius, Australia, UAE, Oman, New Zealand, EFTA (European Free Trade Association), EU, UK, and US. These pacts cover 38 countries with a combined import value of about $12 trillion.
Beneficiary sectors
Duty-free market access in FTA partner countries
The main Indian sectors that have gained duty-free market access in these FTA partner countries are agriculture, textiles and apparel, gems and jewelry, leather and leather goods, engineering, electronics, chemicals, and pharmaceuticals. Commerce Minister Piyush Goyal has been holding meetings with industry bodies, exporters, and officials to improve the use of these pacts. He has suggested businesses leverage these agreements to boost exports and domestic manufacturing.
Facilitation measures
Roadmap for obtaining approvals for agricultural, fisheries products
The government is taking several steps to facilitate the utilization of FTAs. This includes holding review meetings with key officers chief negotiators assessing progress India's free trade acts. A roadmap for obtaining approvals for Indian agricultural and fisheries products across global markets is also being prepared. The commerce ministry has involved Indian missions abroad in this exercise along with all line ministries.
Mission responsibilities
Indian missions abroad tasked with ensuring FTA awareness
Indian missions abroad are responsible for ensuring FTA awareness in importing countries, gathering market intelligence on new opportunities, and expediting resolution of non-tariff barriers. The line ministries are also responsible for ensuring sufficient production, alignment with global standards, and focus on trade facilitation. This entire exercise is crucial as India aims to increase goods and services exports to $2 trillion in the coming years.