Report, released by Global Trade Research Initiative (GTRI), assesses impact of international disruptions and domestic hurdles and reviews market shifts in trade performances.
- Report also highlights varied impact of Free Trade Agreements (FTAs) on India’s global trade dynamics.
About FTAs
- FTAs are treaties between two or more countries to reduce or eliminate certain barriers to trade and investment, and to facilitate stronger trade and commercial ties between participating countries.
- It can cover areas such as trade in goods, services, intellectual property rights (IPRs), etc.
Key findings of the report on India’s FTAs
- India's merchandise imports from FTA partners grew by ~38% whereas exports grew by just ~14.5%.
- FTA with ASEAN (signed in 2010), saw growth in imports at a faster pace than exports.
- Overall, India ranked 17th globally in merchandise exports whereas it is ranked 8th in merchandise imports.
Issues with India’s FTAs
- Lower FTA utilisation: India’s FTA utilization remains low at around 25%, as against 70-80% for developed countries.
- Higher compliance cost: Due to complex certification processes and rules of origin.
- Non-tariff barriers (NTBs): Persistence of stringent standards, sanitary and phytosanitary measures and technical barriers by partner countries like Japan.
- Limited awareness: Inadequate promotion and outreach activities about of FTA benefits among exporters.
Key Recommendations on FTAs by Surjit Bhalla Committee (2019)
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