Amid rising concerns over the increasing free trade pacts of the country, Commerce and Industry Ministry has allayed fears on India’s Free Trade Agreements (FTAs) saying that FTAs with most trading partners have resulted in an increase in exports and not caused any adverse impact on the manufacturing sector. During the Trade and Economic Relations Committee (TERC) headed by the Prime Minister, some concerns were raised on the FTAs affecting the country’s manufacturing sector and also lead to faster rise in imports that may worsen the country’s trade balance.
India has signed FTAs with South Asian Association for Regional Cooperation (SAARC) and North East Asian countries. Commerce and Industry Minister Anand Sharma has informed that India has a trade surplus of about $12 billion with SAARC countries. The country’s exports have more than doubled after signing of the Indo-Asean Trade in Goods Agreement in 2009, though imports have also grown reasonably, he added. Further, India has a trade surplus with Asean after discounting the imports of essential imports such as edible oils.
Further, during the TERC meeting the government has explored the possibility of having more free trade agreements (FTAs) with various countries. At present, India is negotiating several FTAs with various countries, including Canada, Australia, New Zealand besides the European Union. Meanwhile, the government has been taking initiatives to enhance the country’s exports as rising exports improve the country’s GDP and strengthen its external situation. Indian exports increased by 5.14% to $152.10 billion during April-September, 2013 as against $144.67 billion in the corresponding period of last year.
