India's Strategic Approach to Free Trade Agreements and Global Value Chain Integration
India has entered into 20 regional or free trade agreements (FTAs), with recent pacts signed with the UK and EFTA. However, challenges remain as trade deficits with partners like ASEAN and Japan have widened due to structural issues and inadequate negotiation of non-tariff barriers. The article emphasizes the need for India to fast-track negotiations with the US and EU while internalizing lessons from past agreements. Future trade strategies must focus on carbon-intensive sectors, especially with the EU's Carbon Border Adjustment Mechanism (CBAM), and support exporters through better standards and infrastructure to ensure sustained gains.
Key Points
- India currently has 20 regional or free trade agreements in place.
- Trade deficits with ASEAN widened from $10 billion in 2017 to nearly $44 billion by 2023.
- The EU's Carbon Border Adjustment Mechanism (CBAM) is a critical factor for future trade negotiations.
- Successful FTAs require deep consultation with industry bodies and support for domestic exporters.
Exam Facts
- Number of India's FTAs: 20
- Trade deficit with ASEAN in 2023: $44 billion
- Recent FTAs signed: UK (July) and EFTA (October)
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