The government has reviewed existing free trade agreements (FTAs) and their impact on domestic economy and employment generation. Though, the Commerce and Industry Minister Nirmala Sitharaman said that the review of FTAs is a continuous process, but it is considered important on the growing concerns that these agreements implemented by India with other nations may be benefiting more to its trading partners than the domestic industry.
The review meeting for FTAs was headed by Finance Minister Arun Jaitley and various ministries including ministries of Commerce and Industry, Finance and Textiles, participated in the meeting to discuss findings of a parliamentary report on these pacts. During the meeting, Chief Economic Advisor (CEA) Arvind Subramanian gave a presentation on the working of FTAs and also highlighted the impact of FTAs on employment generation. As part of the strategy to boost both exports of goods and services in the long run, the Commerce ministry is working on the three important pillars including exchange rate, visa regime and freight rates.
India has implemented free trade agreements with several countries including Japan, Korea and Singapore as well as the Asian group. It is also negotiating similar deals with several regions, including the European Union, Australia, New Zealand and Canada. Free trade agreements have a major impact on trade and investment worldwide. In fact, they are responsible for shaping business relationships among companies across the globe.