Negotiations regarding FTA with many countries.
India is seeking reciprocal and equitable access to foreign markets through free trade agreements for which the country is negotiating with its trading partners. Commerce and Industry Minister Piyush Goyal gave this information on Thursday. India is currently negotiating free trade agreements (FTAs) with countries like United Arab Emirates, UK and Australia.
Under a free trade agreement, two trading partners reduce or eliminate customs duties on the maximum number of goods traded between them. In addition, they liberalize norms to promote business and investment in the service sectors. Goyal said at the Times Now Summit 2021, “Through FTA, we are trying to create mutual and equitable access to overseas markets. FTA is beneficial for both the countries. If it creates unequal balance then FTA can never succeed.
He said that some of India’s old FTAs which were not balanced have increased the trade deficit with those countries. Goyal said, “We are working for a balanced, fair and equitable FTA, so that both the parties are benefited, employment is created and business opportunities are available for our small, medium and micro industry.”
$500 billion target next fiscal
Addressing the Export Promotion Council, Piyush Goyal had said recently that aggressive marketing of products, timely implementation of free trade agreements (FTA) and cheap loans to MSME companies will help the country in the next financial year. It will help in taking exports to 500 billion dollars.
$400 billion target possible
He had said that exports should be focused on emerging sectors like electronics, vehicles and auto parts, pharmaceuticals and chemicals. Sharad Kumar Saraf, Mumbai-based leading exporter and founder chairman of Technocraft Industries India, said it is possible to achieve exports of $500 billion in 2022-23 as exports will cross $400 billion in this fiscal.
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