Bhadoo, a former Additional Secretary at the Union Commerce and Industry Ministry, was addressing the FTA Conclave Gujarat held in Gandhinagar on Wednesday.

He contrasted the business opportunities created by old FTAs with those by the newer ones. “India’s previous FTAs with ASEAN, Japan, and South Korea did not result in the growth in exports we had expected while FTAs with EU, UK, UAE and Oman are marked with strategic shifts. These are large addressable markets for Indian exporters, but they require high standards for exported products,” he said.

Converting Access Into Market Share

The market of newer partners is worth US$ 12 trillion as their combined GDP stands around US$ 56 trillion, but now the challenge is to convert market access into real market share.

“FTAs alone are not enough to expand India’s share in key global markets such as the UK and the EU. Adherence to international quality standards, competitiveness, and the ability to scale up production are equally critical to strengthening India’s global trade presence,” Bhadoo said.

Bhadoo linked FTAs with the growth in economy, need for investments, and their role in new job creation.

Focussing on the market potential abroad he stated that exports allow Gujarat’s firms to cater to the global demand as they have to pay attention to scaling up their operations and integrating them with the global supply chains, ultimately leading to productive employment.

While FTAs create a parity in tariff, the real challenge lies in meeting the standards, confirmatory assessment, quality, cost, delivery, and documentation. Focussing in the recent FTA with UK and soon to be implemented FTA with European Union, he said that in both the geographies, the share of Indian exports in their imports is negligible and therefore there is a lot more room to boost exports in sectors like engineering goods, textiles and apparel, electronics and semiconductor, and agri products.

He advised the exporters that while FTAs ensure preferential access, documentation is critical and is often ignored by the exporters, depriving them of the market opportunities. He also emphasised the need to align quality with scale to unlock the full potential of emerging trade opportunities.