Need to utilise, leverage FTAs: Comm Secy

PTI New Delhi

The Indian industry must leverage and utilise the free trade agreements (FTAs) that India is finalising, as they provide significant opportunities for both trade and investments, Commerce Secretary Rajesh Agrawal said on Monday.

Speaking at a session on free trade agreements, Agrawal noted that the track record of the country fully utilising and leveraging FTAs is "not great". He stated that the country's industrial policy should complement its trade policy, as trade is also a function of how India invests and produces. 

"...FTA utilization is something we are questioned again and again. What is the benefit that FTAs are actually leading to?" Agrawal said. 

India has implemented trade pacts with a number of countries and groupings including Singapore, Japan, Korea and the Association of Southeast Asian Nations (ASEAN). Agrawal noted that while these pacts have led to an increase in bilateral trade, India's exports have grown at a slower pace than imports. 

Regarding trade pacts with Mauritius, the UAE, Australia, the EU, UK, European Free Trade Association (EFTA), New Zealand and Oman, he described them as "modern" agreements that go beyond tariffs. He added that all stakeholders, including the industry and the government, need to take steps to make these pacts useful for the country.