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India in a Catch – 22 situations on a free trade pact with US.
NEWS
- India is discussing its bilateral trade issues with the US as part of a ‘trade package’ of mutual concerns.
FACTS
- Government of India seems to be in two minds that should India go for FTA with US or not.
- US wants to gain access in India’s market, thus pushing to India to change its domestic laws.
- US wants India to change its patent laws and adopt stringent rule on ever-greening of patents (refers to superficial changes made by a company on a pharmaceutical product whose patent has ended to help it get a fresh patent).
- India export goods to US worth 48.8 Billion USD to US and imported goods 26.61 Billion from US and thus US government is pressuring India to reduce trade deficit.
Why India should go for FTA
- It will help in India’s development.
- Also India-US 2+2 dialogue is negotiating new and better deal to enhance FTA.
- Also it will increase market access for India which will boost textile, leather and gems and jewellery industries of India.
- It will help India to achieve geo-political and diplomatic gains.
Why India should not go for FTA
- FTA will impact India’s domestic, dairy, medical equipment and agricultural industries.
- By signing FTA, US can pressure India to change its policies on Intellectual Property, retail and investment policies which needs to be considered carefully.
- On geopolitical issue there is no guarantee that and FTA will make US tow India’s line.
