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Source: Business Standard
What is the News?
Federation of Indian Exports Organization (FIEO) has said that signing free trade agreements (FTAs) with India’s major trading partners such as the United States, UK, EU, Australia will boost exports and help in attracting more foreign investments into the country.
What are FTAs (Free Trade Agreements)?
- FTAs are arrangements between two or more countries or trading blocs that primarily agree to reduce or eliminate customs tariff and non tariff barriers on substantial trade between them.
Significance of FTAs:
- By eliminating tariffs and some non-tariff barriers, FTA partners get easier market access into one another’s countries.
- Moreover, one of the reasons for the success of countries such as Vietnam in attracting investment and relocating units is its effective FTAs with the rest of the World.
Suggestions given by FIEO to increase exports:
- Firstly, the Government should increase market access initiative funds and formulate a scheme for marketing with a minimum corpus of Rs 1,000 crore annually, to take exports to $1 trillion in the next five years.
- Secondly, the Government needs to push growth in sunrise sectors such as electronics, machinery, pharma, networking products among others.
- Thirdly, there should not be any delay in the release of refunds to the exporters as it results in limiting liquidity for exporters.
- Lastly, the Government should notify the rates under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme as soon as possible.
