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Major Trade Agreements Of India

It is a list of free trade agreements between two parties in which each party could be a country (or another customs territory), a trade bloc or an informal group of countries. India, which has not signed a trade agreement since 2012, will soon resume talks on a possible free trade agreement with the European Union and the United States. Even when the Narendra Modi government withdrew from the Comprehensive Regional Economic Partnership (RCEP), it is eager to enter into trade agreements with other economic blocs, said a leading source, adding that India could clearly gain amid growing anti-Chinese sentiment in many parts of the world. “The overall impact on India`s exports on the partners with whom the agreements were signed is 13.4% for manufactured goods and 10.9% for total products. The overall effects on imports are less significant (12.7% for manufactured goods and 8.6% for total,” he said. At least seven of the 14 trade agreements with partners such as Bhutan, Singapore, Chile, Nepal, ASEAN, MERCOSUR and Afghanistan have encouraged the export of manufactured goods from the country, he said. Four of the agreements, including Sri Lanka, Thailand, SAFTA and BIMSTEC, have no impact on exports. It was only in the case of Japan and South Korea that exports of industrial products suffered. Vietnam, which is becoming a huge competition for many economies, has already signed a trade pact with the EU.

EFTA [17] has bilateral agreements with the following countries – including dependent territories – and blocs: note: any customs union, every common market, every economic union, the customs and monetary union and the Economic and Monetary Union are also a free trade area. Bilateral agreements with South Korea, Japan and Sri Lanka are the only ones where the percentage increase in imports is greater than that of exports, the survey added. A compilation of trade agreements already signed by India or engaged in negotiations is shown below- Other Asian nations looking at trade agreements with the West, Vietnam has already benefited from free trade agreements signed with its trading partners from a trade point of view, and the only countries where the percentage increase in imports has been greater than exports , were Japan. South Korea and Sri Lanka. The Eurasian Economic Union, composed of Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan, has concluded free trade agreements, see below. “India cannot afford to have the Bombay Club that existed in the early 1990s, it is necessary to stay connected to other countries, including trade and economic cooperation,” said Sanjaya Baru, an economist and media advisor to former Prime Minister Manmohan Singh, previously. The Bombay Club was made up of renowned Indian industrialists who, in 1993, supported the process of economic liberalization in order to create protection and measures for a level playing field. Overall, India`s experience in trade with its major free trade partners, with the exception of SAFTA, has not been very encouraging. While India has significantly increased its exports from its free trade agreement with SAFTA countries, the EPA with Korea and the ECSC with ASEAN have been more beneficial to these economies. However, in the case of the EPA with Japan, bilateral trade declined or stagnated after the first year of implementation, but with Japan, too, the trade deficit increased considerably.

In addition to a number of domestic factors that have hampered the competitiveness of Indian exports and prevented India from using preferential market access in these partner countries, a number of FTA-related issues are responsible for a less favourable development of India`s trade relations with ASEAN, Korea and Japan. These issues include erroneous obligations, stricter rules of origin, a lack of awareness of free trade agreements and high compliance costs.