The problem with India’s free trade agreement strategy
This article critiques India's recent surge in bilateral free trade agreements, arguing that the strategy has often led to widening trade deficits rather than the intended economic growth. It highlights that trade with key partners like ASEAN, Japan, and South Korea has become increasingly import-driven.
Why it matters
It challenges the prevailing narrative that FTAs are inherently beneficial for India's industrial competitiveness and global value chain integration.
Over the past few years, India has shown its great interest in trade diplomacy to promote its economic and strategic interest thereby steadily weaving an expanding network of bilateral free trade agreements to secure greater market access while reinforcing its broader economic and strategic partnership. India’s new founded enthusiasm in external engagement has culminated in trade agreements with United Arab Emirates, Australia, Oman, the United Kingdom, the European Union, and most recently, New Zealand. Its imperatives to enhance market access continue to extend the reach of its trade architecture through ongoing trade talks with United States, Gulf countries and Canada, highlighting a decisive shift towards bilateralism as vehicle of market access and value chain integration and economic dynamism.
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