HIGH POINT IN INDIA’S TRADE STRATEGY
It is worth noting that the trade deal with the EU marked India’s ninth such agreement in four years.
This marked a U-turn from nearly a decade’s hesitation and reticence on engaging in FTAs. Since 2022, India has signed several trade pacts, beginning with the United Arab Emirates and Australia, followed by the European Free Trade Association consisting of Iceland, Lichtenstein, Norway and Switzerland. The sprint picked up pace last year as India entered into FTAs with Oman, New Zealand and the United Kingdom.
India’s latest FTAs are more exhaustive in scope and market access ambitions than its earlier ones. These include rules on modern 21st-century trade issues, such as digital trade, government procurement, competition policy, as well as labour and environment standards.
While still protecting sensitive sectors like agriculture and dairy, India is reducing tariffs on several items, including food, beverages and automobiles. It is also allowing foreign suppliers in previously protected domestic services like accounting, and liberalising rules for intellectual property.
The deal with the EU again incorporates all the above features. By having trade rules that are closely aligned to global standards, it marks India’s coming of age as a global trade actor ready to contribute to rule-making on 21st-century trade issues.
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