Is signing of more FTAâ€™s the key to better trade? Free trade agreements (FTA) aim to
commerce has reduced the exports
estimation from 500B$ to only 325B$ and
minimizing or doing away with the excise
exports have reduced as compared to last
duties in order to boost trade volumes
year which shows that the country lacks
the framework and standard as compared
agreements. We are living in a global
to the nations with which India is signing
village and we are living in exponential
the free trade agreements. This also
times where increasing trade among
shows that mere signing of more FTAs is
nations is viewed as the means to achieve
more detrimental rather than beneficial.
overall growth. But as all good things, we
The micro small and medium enterprises
cannot reap benefits of FTAs when they
work in isolation.
employment and exports. Nearly 40% of
Signing of FTAs opens the markets of
the total exports come from this sector.
various countries for local producers and
But with signing of free trade agreements
gives the consumers more choices. It
these enterprises would need to compete
helps make the market become more
with big businesses from the partner
competitive and thereby improves quality.
But India is still more of a relatively closed
certifications are a problem for the small
economy with reforms still in progress.
and medium production houses. The
Interests of different segments and
government should first safeguard their
people have to be safeguarded and
interest by assisting them in incorporating
bottlenecks need to be removed before
the latest standards so that they can be
signing of more Free trade agreements.
more competitive and are able to sell
India has signed 15 free trade agreements
their products in the new markets that
and many more are yet to be signed,
open up in these countries. This will help
making India one of the highest FTA
boost the exports and lower the trade
signing countries. Still India continues to
deficit of India.
be a trade deficit country. The ministry of 13
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