INDIA-UK FTA IS WELCOME IF IT HELPS MANUFACTURING AT BOTH ENDS
ECONOMIC PARTNERSHIP, NOT FTA, SHOULD BE INDIA’S TOP PRIORITY
2022-11-07 16:19
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India, accounting for a meagre 2.4 percent of the world surface area, over 18 percent of the current world population and only three percent of global manufacturing output, should focus more on production than free trade agreements (FTA). The matter is relevant as the United Kingdom and European Union members are keen on inking such agreements with import dependent India to mainly expand the export of their products and services. In 2019, India had pulled out of the Regional Comprehensive Economic Partnership (RCEP) agreement, touted to be the world's largest trade protocol between China and 14 other Asian countries, even after being part of the negotiations for seven years. The reason was that India was concerned about the fact that RCEP would promptly reduce merchandise import duties by 80-90 percent. And, that would further raise India's large trade imbalances with China and expose domestic producers to greater foreign competition. It will hurt India’s manufacturing ambition.