New Year Gift To Exporters: India Signs 2 FTAs Within A Span Of 5 Days

The India-European Union trade agreement is also set to be signed within the next month. Amid talks that are in an advanced stage, an EU delegation is expected to visit New Delhi next month and an announcement on the FTA could be finalised. The upcoming India-EU Summit is also scheduled for next month.

Besides the EU, talks are on with the Gulf Cooperation Council (GCC), Israel, Canada, and Peru. Importantly, India is negotiating dedicated quotas of employment visas for skilled Indian professionals, which will enable Indian talent to access better global opportunities. These have already been finalised with Russia and New Zealand.

India’s Shift In Trade Strategy

With the proposed bilateral trade agreement (BTA) with the US continuing to take time in finalising, India has pressed the pedal in going ahead with diversification of markets to support the country’s exporters.

Apart from that, India has also signed terms of reference (ToRs) for trade pacts with a few more countries, including Russia and Armenia.

Despite the tariff war with the US, India managed to register a growth of more than 5% in exports during the April to November period.

Notably, during this period, the US continued to be India’s top export destination, despite the imposition of a high tariff of 50%.

What’s In The India-New Zealand FTA

Commerce and Industry Minister Piyush Goyal said that the India-New Zealand FTA marks “a significant milestone” in the bilateral ties between the two countries, as it would promote zero duty on 100% of India’s exports. Tariffs have been eliminated across all tariff lines. Goyal added that the pact will also provide a boost to investments, with New Zealand committed to facilitating US$ 20 billion in foreign direct investment into India in the next 15 years, pushing ‘Make in India’ and manufacturing, especially in the key infrastructure sector.

Services, innovation and job creation will also get a push with the FTA.

Union Textile Minister Giriraj Singh told The Secretariat that India is talking with the US actively. "Our Commerce Ministry is trying to work out an arrangement with other nations as well. Any future FTA with them will only add to our growing market. I believe that we would be able to diversify the export market over the next few months and will target all 210 countries in the world," Singh said.

Meanwhile, the India-Oman Comprehensive Economic Partnership Agreement (CEPA) signed just four days ago, will enable Indian exporters to integrate more effectively into regional value chains, diversify markets, and expand India’s export footprint.

Oman will also serve as a gateway for India to the West Asian markets, along with Africa.