The Ministry of Commerce and Industry has launched a nationwide push to boost India’s use of Free Trade Agreements (FTAs) and tap new export markets. Union Minister Piyush Goyal made the call at a National Workshop on leveraging FTAs, urging state governments, exporters, small businesses and entrepreneurs across all 780 districts to make full use of the trade deals India has signed.
What India’s FTA Network Covers
India currently has nine operational FTAs with countries representing around $60 trillion in combined GDP. These agreements give Indian exporters preferential access to nearly two-thirds of world trade. The ministry is also pushing for new FTAs with Canada, Mexico, Chile, Mercosur nations, SACU, GCC and Israel. Once these are signed along with deeper market access efforts, India could reach 75% of global trade at lower rates than competing countries.
Several FTAs have recently gone live or will soon become operational: the India-UK FTA from July 15, and agreements with Mauritius, Oman, UAE, Australia and EFTA (four countries). New Zealand’s agreement is expected soon, followed by the European Union’s 27 nations. Negotiations with the United States continue.
India has set a $1 trillion export target for the current year, representing 16% growth. Exports during the first four months reached $317 billion, up $36-37 billion from the same period last year.
What This Means for You
If you run a small business, export products or plan to start exporting, these FTAs could open new markets at lower tariffs than your competitors face. The government plans to set up support systems at state and district levels to help exporters get information, handle paperwork and understand rules faster. India’s focus on e-commerce is also meant to make it easier for first-time exporters and small businesses to reach international customers. The ministry wants to help companies scale up, move into new sectors and explore markets that were previously difficult to access.