How India is at the center of free trade agreements

India actively engages in regional and bilateral trade negotiations to diversify and expand its export markets while ensuring its access to the raw materials, intermediates, and capital goods needed to stimulate value-added domestic manufacturing. Presently, India shares preferential market access and economic cooperation through trade agreements with over 50 countries.

On the other hand, Indian exports have outperformed in recent months and have achieved its ambitious target of $400 billion. This speaks volumes about Indian MSMEs and their resilience as they contribute around 50% to the country’s exports. The extension of the foreign trade policy could help India enhance crossborder trade.

India and Australia signed an interim free trade agreement on April 2. The India-Australia Economic Cooperation and Trade Agreement “provides zero duty exports to 100% tariff lines from India. India and Australia believe that they can potentially take their bilateral trade from $27.5 billion to $100 billion in eight years. India is working with countries such as the UK, the European Union nations, Israel, and Canada, and will pave the way for both sides to boost exports.

The India-UAE Comprehensive Economic Partnership Agreement (CEPA) will help augment India's economy and help it to pursue its geo-economic strategy. According to the International Trade Centre’s Export Potential Map, India has about US$10.1 billion of untapped goods trade potential with the UAE.

India and UK conclude the second round of talks for a proposed free trade agreement. UK PM Boris Johnson's India Visit Likely This Month to strengthen trade agreement talks. "A trade deal with India's booming economy offers huge benefits for British businesses, workers, and consumers," Prime Minister Johnson said. On the other hand, India-EU FTA is expected to double bilateral trade between the two partners from the existing $110 billion. Indian goods and products are in huge demand, companies are also eyeing the Indian market with huge investments.

Free trade agreements allow India’s SMEs with great power tools to access global markets with minimal cost and huge margins. Crossborder is a huge asset for many traders. Eunimart is one such driver in the crossborder world, it helps SMEs with tools integrated with AI technology to help SMEs target their audience better.?

India is at the center of geopolitics and not being in alignment with any major power gives it an upper hand for trade policies, as no major trade disruption could collapse India's promises. These trade agreements are launched at a time when India is coming out of the Covid-19 pandemic-related slow down and wants to become “Atmanirbhar” and play “a bigger role in the global value chain”. While India’s ambition matches that of its major trading partners who want it to be a key player in their supply chains.

Ref :- economictimes, trade.gov.