Page 13

Is signing of more FTA’s the key to better trade? Free trade agreements (FTA) aim to

commerce has reduced the exports

breakdown

by

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

among

such

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

(MSME)

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.

country.

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.

the

geographical

countries

barriers

signing

be a trade deficit country. The ministry of 13

contribute

Meeting

heavily

towards

standards

and

Iblitz magazine 2013 final  

iBlitz the quarterly campus magazine at IIFT

Iblitz magazine 2013 final  

iBlitz the quarterly campus magazine at IIFT

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