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India Eyes 75% Global Trade Access Through Upcoming FTAs
India already has nine trade agreements with other economies.
These agreements can make it cheaper for Indian businesses to sell goods in foreign markets.
Minister Piyush Goyal said new agreements could eventually give India access to 75% of global trade at better rates than competitors.
India is discussing agreements with Canada, Mexico, Chile, Israel and several regional groups.
It may also review some existing arrangements with ASEAN, Korea and Japan.
The government wants businesses in all 780 districts to use these agreements.
Goyal also pointed to India’s 7.8% first-quarter GDP growth.
India is aiming to export $1 trillion worth of goods and services during the current year.
Piyush Goyal said upcoming FTAs could help India access 75% of global trade at rates below competitors.
India’s nine existing FTAs cover economies with a combined GDP of about $60 trillion and nearly two-thirds of global trade.
Potential agreements include Canada, Mexico, Chile, Mercosur, SACU, GCC and Israel.
India is also considering reviews or other market-access measures involving ASEAN, Korea and Japan.
The government has set a $1 trillion export target for the current year, requiring about 16% growth.
- Who
- Commerce and Industry Minister Piyush Goyal and Indian businesses, traders, entrepreneurs and exporters.
- What
- India is expanding and reviewing free trade agreements to secure broader and more competitive access to global markets.
- Where
- At the National Workshop on “Leveraging FTAs an Outreach Programme” in New Delhi, with the intended benefits applying across India and global markets.
- When
- The announcement was made on Thursday; additional agreements are expected over the next few months and couple of years.
- Why
- To expand exports, improve market access for Indian businesses and help India reach its $1 trillion export target.
Key facts
- Existing FTAs
- India has nine FTAs spanning economies with a combined GDP of about $60 trillion.
- Current market coverage
- The existing agreements provide preferential access to nearly two-thirds of global trade.
- Potential coverage
- Upcoming FTAs and deeper market-access efforts could raise access to 75% of global trade.
- Potential agreements
- Canada, Mexico, Chile, Mercosur, SACU, GCC and Israel are listed among the prospective FTA partners.
- Reviews under consideration
- India may review or pursue other market-access measures involving ASEAN, Korea and Japan.
- GDP growth
- India recorded first-quarter GDP growth of 7.8% at constant prices, according to Goyal.
- Export target
- India has set a $1 trillion export target for the current year, representing about 16% growth.
- Outreach scope
- The government wants the FTA initiative to reach businesses and entrepreneurs across all 780 districts.
Sources
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