Source: Business Standard
Relevance: Negotiating Free Trade Agreement (FTA’s)
Synopsis: India is on the verge of signing FTA’s with some important nations. Let’s have a brief look at the subject.
Context: Recently, commerce and industry minister Piyush Goyal had said that India is at a ‘positive momentum’ with respect to inking trade deals with the UK, Australia, Canada, Bangladesh, EU, GCC nations, and Israel.
Suggestions by the experts on FTAs:
- Focus on reduction in tariff – Experts say that reduction in tariff is equally crucial while working towards any deal.
- Better preparation– We need to provide better opportunities to other countries than the previous agreement.
- Discussion on the new subject– we should not restart discussions in areas where consensus has been reached. Starting discussion around areas where there were differences will be a step in the right direction.
Why the urgency now?
- India’s exit from RCEP– This acted as a catalyst to sign better deals with other nations.
- Export opportunities– due to a consistent surge in exports over the last few months, experts believe that such deals are important to continue the momentum.
Benefits of FTAs:
- Attracting investment– These FTAs will be effective in attracting investment in the country through PLI scheme.
- Boost Competition– FTAs will create an open market system, which leads to an increase in competition in the economy.
|Terms to know: RCEP, PLI scheme|