Stories
New FTAs Boost Investor Confidence in India's Global Supply Chains: Comm Secy
- •Commerce Secretary Rajesh Agarwal stated that India's new Free Trade Agreements (FTAs) are designed to provide comfort to long-term investors in global supply chains.
- •These modern FTAs offer investors access to a USD 60 trillion market from within India, enhancing predictability for investments.
- •The agreements provide tariff predictability, crucial for global value chains where goods flow across multiple regions for processing and distribution.
- •India has finalized trade pacts with key regions including the EU, UK, Oman, New Zealand, UAE, Australia, and the EFTA bloc.
- •These FTAs help diversify India's export basket and de-risk export supply chains, promoting sustainable export growth by allowing access to multiple markets.
Key Questions Answered
The new free trade agreements finalised over the last five to six years are designed to give long-term investors comfort by offering tariff predictability and streamlined processes for moving goods across regions. Additionally, these modern pacts provide investors sitting in India access to a USD 60 trillion market while helping to de-risk and diversify export supply chains.
India has finalized trade pacts and agreements with several key partners, including the European Union, the United Kingdom, Oman, New Zealand, the UAE, Australia, and the EFTA bloc.
Under the trade pact with the European Free Trade Association (EFTA), India received a commitment of USD 100 billion in foreign direct investment (FDI) over a 15-year period. Furthermore, New Zealand has committed to invest USD 20 billion in India as part of their trade deal.
