{"id":195388,"date":"2022-07-13T14:23:44","date_gmt":"2022-07-13T08:53:44","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=195388"},"modified":"2022-07-13T16:40:49","modified_gmt":"2022-07-13T11:10:49","slug":"concerns-of-indian-players-should-be-taken-care-of-while-crafting-ftas","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/concerns-of-indian-players-should-be-taken-care-of-while-crafting-ftas\/","title":{"rendered":"Concerns of Indian players should be taken care of while crafting FTAs"},"content":{"rendered":"\n

Source<\/strong>: This post is based on the article \u201cConcerns of Indian players should be taken care of while crafting FTAs<\/strong>\u201d published in The Indian Express<\/strong> on 13th Jul 22<\/strong>.<\/p>\n

Syllabus<\/strong>: GS2 – Bilateral, Regional and Global Groupings and Agreements involving India and\/or affecting India\u2019s interests.<\/p>\n

Relevance<\/strong>: Free Trade Agreements (FTAs)<\/p>\n

News<\/strong>: A well-crafted trade agreement could help India enhance its share in global trade and help attain the government’s target of making the country a $5-trillion economy.<\/p>\n

Signing FTAs with multiple countries<\/h5>\n

Recently, India has signed trade agreements with Australia<\/strong> <\/a><\/span>and the UAE<\/a><\/strong><\/span>.<\/p>\n

In the last week of June, New Delhi began talks for a similar agreement with the EU<\/a><\/strong><\/span>. These talks could have a bearing on tariff-related matters in agriculture and industry. India\u2019s successful sectors like textiles, pharmaceuticals and leather could benefit from these deliberations.<\/p>\n

Why an FTA with EU is significant to India?<\/h5>\n

In the last decade, India\u2019s exports to EU countries have grown at a faster pace than the country\u2019s overall exports.<\/p>\n

The Netherlands, Germany, Belgium, Italy, and France have emerged as key markets for Indian products.<\/p>\n

Hence, a successful free trade agreement (FTA) with the EU could help India to expand its footfall<\/strong> in markets such as Poland, Portugal, Greece, the Czech Republic and Romania. India’s exports have registered a double-digit annual growth rate in these countries in the last decade.<\/p>\n

What are some concerns associated with signing of FTAs?<\/h5>\n

Before entering into trade agreements, India needs to take care of a few key concerns.<\/p>\n

– Competing on equal terms<\/strong>: It has been observed that when India is an importer, the preferential tariffs under the FTA are significantly lower than the rates charged from countries given Most Favoured Nation (MFN) status by New Delhi. But when the partner country is the importer, preferential tariffs on Indian goods, in most cases, are closer to the MFN tariffs.<\/p>\n