New FTAs provide comfort to invest in global supply chains in India: Commerce Secretary Rajesh Agarwal
India's latest free trade agreements are designed to foster long-term investments within global supply chains, also ensuring tariff stability, Commerce Secretary Rajesh Agarwal said. By tapping into a massive $60 trillion market, these agreements bolster investor confidence, he noted.
New Delhi: Commerce Secretary Rajesh Agarwal highlighted on Thursday that India's recently finalized free trade agreements (FTAs) aim to provide reassurance to long-term investors interested in establishing global supply chains within India. These agreements open up access to a USD 60 trillion market from within India. Agarwal pointed out that the purpose of these modern FTAs is to offer tariff predictability, which in turn encourages investments.
Speaking at a PAFI event, Agarwal emphasized that in today's global value chain environment, businesses need predictability regarding both the flow of goods and tariffs. He explained that the FTAs provide such predictability, enabling companies to import from various regions and efficiently distribute products to other markets.
India has established trade pacts with the EU, UK, Oman, New Zealand, UAE, Australia, and the EFTA bloc. Under the EFTA agreement, India has received a commitment of USD 100 billion in Foreign Direct Investment (FDI) over a 15-year period. Similarly, New Zealand has pledged to invest USD 20 billion in India as part of this pact.
Agarwal also noted that these trade agreements contribute to diversifying India's export basket. By diversifying the export supply chain, businesses can mitigate risks and create a more stable environment for their products. This diversification aids in de-risking exports by reaching the same goods in ten different markets, thus reducing uncertainty and fostering sustainable growth in exports.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
