India's Commerce Secretary Advocates for Synergy Between FTAs and Industrial Policies
FTAs and industrial policy must move in tandem to boost growth, says commerce secretary
Mint
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Rajesh Agarwal, India's Commerce Secretary, emphasized the need for free trade agreements (FTAs) and industrial policies to align for optimal growth at the CII Business Summit in New Delhi. He stated that all stakeholders must leverage opportunities created by trade agreements to strengthen India's industrial ecosystem.
- 01FTAs and industrial policies must work together to maximize economic benefits.
- 02India has established nine FTAs with 38 countries, expanding trade opportunities.
- 03Export growth has lagged behind imports, highlighting the need for better alignment with trade ambitions.
- 04The government is launching a broader 'Made in India' branding scheme to boost domestic manufacturing.
- 05Technological integration and reforms are crucial to achieving a $30 trillion economy by 2047.
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At the CII Business Summit in New Delhi, Rajesh Agarwal, India's Commerce Secretary, stressed the importance of synchronizing free trade agreements (FTAs) with industrial policies to capitalize on emerging economic opportunities. He pointed out that India has expanded its FTAs to include nine agreements with 38 countries, starting with a deal with Mauritius in 2021 and followed by agreements with the UAE and Australia. However, Agarwal noted that while imports have surged, export growth has been uneven, partly due to low tariffs in partner countries and strong domestic demand limiting export capacity. He urged stakeholders, including industry and consumers, to actively leverage the opportunities these agreements present. Additionally, the government plans to launch a comprehensive 'Made in India' branding initiative, targeting the production of intermediate goods and supporting micro, small, and medium enterprises (MSMEs). The ultimate goal is to build globally competitive industries and achieve the vision of a $30 trillion economy by 2047 through various reforms and technological advancements.
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The alignment of FTAs with industrial policies is expected to enhance domestic manufacturing and create jobs, particularly in sectors identified for growth.
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