FTAs enable India to boost global trade

New Delhi: Talks for the proposed free trade agreements (FTAs) with countries, including Australia, the UK and the UAE, are moving at a fast pace and these pacts, when implemented, would help provide greater market access to domestic goods, Commerce and Industry Minister Piyush Goyal said on Sunday.

Under an FTA, two trading partners reduce or eliminate customs duties on the maximum number of goods traded between them. Besides, they liberalise norms to enhance trade in services and boost investments.

Goyal said that talks for such pacts are going on with Australia, UAE, GCC (Gulf Cooperation Council), European Union, Israel and the UK.Member countries of GCC are Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (UAE).When these agreements would be finalised, it would provide "greater access to our manufactured goods as there will be less or zero customs duties," the minister said at Vaishya Samaj Sammelan.He also said that Uttar Pradesh plays a key role in promoting the country's exports.

Goyal added that India's economy was witnessing a bounce back in every sphere, and the country is well on track to achieve historical highs in goods and services exports. He said that India is on course to achieve $400 billion of merchandise exports in the current financial year ending March. "Also, on the services (exports) side, we are well on track to go up to a $150 billion. So, collectively we are on track for historic goods and services exports," he said. Inaugurating the India International Trade Fair (IITF) here, the commerce and industry minister said that the country witnessed the 'highest ever' FDI inflow of $27 billion in the first four months this fiscal, a 62 per cent jump over the same period last year. Asserting that the world takes India as a trusted global partner in maintaining global supply chains, Goyal added, despite the lockdown, India did not default on any service support to the global community.