Free Trade Agreements (FTAs) are good when there is a reciprocal access
Addressing a webinar on the ‘The Road to Atamanirbhar Bharat’, Commerce and Industry Minister Piyush Goyal remarks, “India should focus its energy on FTAs initially with developed countries that are looking for market access in the large Indian market and which can open their doors for domestic goods as well.”
India’s decision to turn away from the Regional Comprehensive Economic Partnership (RCEP), pact, Asia’s largest trading bloc has been intensively talked about among circles of economists and international trade experts.
“One of the primary reasons why India could not join the RCEP pact was that some of the members do not “really” have democratic transparent trading systems,” the minister explains.
The decision was taken to boost manufacturing at large volumes and with that businesses can serve both domestic and international markets as many countries have taken the undue advantage of free market access in India which has ultimately affected the revenues of local manufactures adversely.
“I think the countries with whom we have reciprocal and equitable relations are where we will focus our energies for future FTAs, “added Goyal.
Talking about creating the manufacturing ecosystem worth Rs 20 lakh crore in India, he says, “Even if you take a conservative 30 per cent as labour or salary wages or the component of labour direct and indirect , you are looking at Rs 6 lakh crore going into the hands of the people of India.”
Cover image by Magic Bricks
