In order to increase bilateral trade and investment, India recently inked free trade agreements with the UAE in May 2022 and with Australia on December 29, 2022.
According to Piyush Goyal, the minister of business and industry, talks for bilateral free trade agreements with a number of countries are “well on track,” India is also looking at certain multilateral agreements that are acceptable and equitable for all the signatory nations.
The nation is negotiating free trade agreements with a number of nations, including the UK, Canada, and the EU.
“In our conversations with several other nations to look at bilateral trade deals, we are making great progress. Additionally, we are considering one or two multilateral trade deals from which we believe we may gain.” Goyal made this statement while participating in the online 27th Wharton India Economic Forum.
the broadest range of commodities that can be sold freely between two or more nations without incurring major customs fees. In order to encourage investment and service trade, rules are also relaxed.
The ministry recommends that India create bilateral free trade agreements.
Goyal emphasised the need of balanced agreements that serve both countries’ interests. They must contribute to the defence of some key industries while taking into account the sensibilities of both nations.
He said that not all products could be effectively produced in India and that imports were necessary for the manufacturing of some products.
Trade agreements would help India, though, as it competes in many industries, including labor-intensive ones like textiles, leather, footwear, and pharmaceuticals.
As a result, the minister said, “we decided that we must talk to like-minded countries, particularly countries that have a rule-based trading order, which are transparent in their economic systems, as is India, and enter into agreements that are win-win for both sides and which are fair, equitable, and balanced.”
“India conducted 74 billion digital banking transactions in 2022. It is larger than the sum of China, the US, and Europe. To better serve the demands of the rest of the world, India aims to develop a high-quality, high-tech, and service-oriented economy “Added he.
