India`s Trade Agreements With Other Countries

The attempt to promote free trade while promoting protectionism under the guise of “atmanirbhar Bharat?”. You can`t have your cake and eat it! Either you open up to trade or you don`t. Chart 5: South Asian countries` share of comparison with India and China in world trade While this is a good step, our future FTA negotiating strategy and tariff plans must be fully aligned with the Aatmanirbhar Bharat strategy to expand the champion sectors. This is not a total protection for these industries, but a gradual reduction in import duties under the free trade agreement for years to allow them to fully integrate into global value chains (CICs). In 2010, it began talks with New Zealand and Australia in 2011, but were frozen in 2013, when India began negotiating the Regional Comprehensive Economic Partnership (RCEP) with the 10 ASEAN countries, Australia, China, Japan, New Zealand and South Korea. In November 2019, India withdrew from the RCEP negotiations, considering that trade deficits, particularly with China, and countries are reluctant to open markets for Indian services and investment. The RCEP has generated a great deal of controversy and resistance in the RCEP, particularly from farmers, unions, dairy cooperatives and patient groups who were concerned about the impact on drugs. Only Afghanistan, Bhutan and Nepal have a higher share of trade with India than China This form of abbreviated policy guides India`s trade trends with its neighbours to determine the current state of trade ties. A comparison with China was also made given its growing presence in the neighbourhood since 2005.

On the basis of the analysis, the letter concludes with policy recommendations to promote better intra-regional trade. [6] D. R. Kanth, “Global Trade Declines 13% to `16.5 Trillion in 2015,” LiveMint, April 7, 2016, www.livemint.com/Politics/t5GR5PqKbFLGt7K404LQ8L/In-2015-global-trade-declined-13-to-165-trillion-in-valu.html. The Indian government has actively sought bilateral trade agreements with other so-called developing countries, as well as with industrialized countries. EFTA[17] has bilateral agreements with the following countries – including dependent regions – and blocs: China`s trade with its N8 neighbours is mainly export-oriented (Figure 4), making it one of the main sources of products to South Asia. [11] Despite the existence of regional and bilateral free trade agreements, the volume of India`s trade with its neighbours has remained well below the value of China, which has only a free trade agreement in the region (Figure 2). Read also: Modi started out as a champion of free trade, but ends as a protectionist With the increasing shift of the approach of world governments towards trade agreements in the midst of the coronavirus pandemic, the Narendra Modi government is stepping up its efforts to proactively rethink India`s trade relations with the rest of the world by revising its free trade agreement or free trade strategy. These include reviewing and renegotiating existing free trade agreements with ASEAN, Japan and Korea, as well as strengthening trade alliances with the European Union, the United Kingdom, the United States and Australia. India is also part of SAFTA (South Asia Free Trade Agreement), BIMSTEC (to develop a free trade agreement), the Asia-Pacific Trade Agreement (preferential trade agreement with Bangladesh, China, Laos, South Korea and Sri Lanka) and IBSA (the India-Brazil-South Africa triangle, which aims to develop a free trade agreement with South Africa). At a time when India has negotiated free trade agreements with a number of countries/groups, including the Comprehensive Economic Partnership (RCEP), and has decided to begin the review of the India-ASEAN free trade agreement, the state of trade between India and its major free trade partners needs to be examined. Among the major free trade agreements signed and implemented by India to date are the Free Trade Agreement