Need for FTA push to diversify export basket
Still 7 countries account for over 40% of India’s exports; India achieves 75% of $400-bn exports target set for 2021-22
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New Delhi: The Economic Survey on Monday pitched for giving a push to the ongoing negotiations for the proposed free-trade agreements (FTAs) as these pacts will help in diversifying India's export basket and destinations.
It added that India has diversified its export destinations in the past 25 years, yet more than 40 per cent of the country's exports is still accounted for by only seven countries. India has been negotiating FTAs with several partners, both bilateral and regional, for the past many years with a view to promote India's exports. "A further push in this direction would help provide the institutional arrangements to, inter alia, diversify both products and destinations," it said. In a free-trade pact, two countries either significantly reduce or eliminate customs duties on the maximum number of goods traded between them. These pacts help provide a competitive edge to exporters.
Trade experts have stated that early conclusion and implementation of these agreements will help in boosting the country's exports. India is negotiating such FTAs with countries including the UK, Australia, European Union (EU), Canada and the UAE. It is also reviewing its existing trade agreements with nations such as Singapore and ASEAN. "Negotiations are complete for agreement with the UAE and at the advance stage with Australia," the Survey said. It also stated that India's merchandise exports touched $301.4 billion during April-December this fiscal. "This shows that India is well on track as far as attaining the export target is concerned," it said adding that out of an ambitious export target of $400 billion set for 2021-22, India has already attained more than 75 per cent.
