logo
admin January 21, 2022 No Comments

Trade Agreement in India

Trade Agreement in India: An Overview

India is one of the fastest-growing economies in the world, and it has been focusing on expanding its trade relations with other countries. In recent years, India has signed several trade agreements with various countries and trading blocs to increase its exports and attract foreign investment. These agreements have played a crucial role in boosting the Indian economy and enhancing its global positioning.

What is a Trade Agreement?

A trade agreement is a pact between two or more countries that outlines the terms and conditions of trade between them. These agreements are intended to increase trade, reduce barriers, and promote economic growth. The agreement can be bilateral (between two countries) or multilateral (between multiple countries).

India’s Trade Agreements

India has signed several trade agreements with various countries and blocs, including the United States, Japan, South Korea, ASEAN, and the European Union. These agreements have had a significant impact on the Indian economy and have helped India to position itself as an important player in the global market.

The India-United States Trade Agreement

In 2019, India and the United States signed a limited trade agreement that focused on reducing trade barriers in the agricultural, medical devices, and information technology sectors. The deal was aimed at increasing bilateral trade between the two countries. However, the trade agreement did not address some of the long-standing issues between the two countries, such as tariff disputes and market access.

The India-Japan Comprehensive Economic Partnership Agreement

The India-Japan Comprehensive Economic Partnership Agreement (CEPA) was signed in 2011 and came into effect in 2012. The agreement aimed to promote trade and investment between the two countries by reducing tariffs on various goods and services. The CEPA has been successful in increasing bilateral trade between India and Japan, and it has also helped India to attract Japanese investment in various sectors.

The India-Korea Comprehensive Economic Partnership Agreement

The India-Korea Comprehensive Economic Partnership Agreement (CEPA) was signed in 2009 and came into effect in 2010. The agreement aimed to increase bilateral trade between India and Korea by reducing tariffs on various goods and services. The CEPA has been successful in increasing trade between the two countries, and it has also helped India to attract Korean investment in various sectors.

The India-ASEAN Trade Agreement

The India-ASEAN Trade Agreement was signed in 2009 and came into effect in 2010. The agreement aimed to promote bilateral trade between India and the ASEAN countries (Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei, Myanmar, Cambodia, Laos, and Vietnam) by reducing tariffs on various goods and services. The agreement has been successful in increasing trade between India and the ASEAN countries.

The India-European Union Free Trade Agreement

The India-European Union Free Trade Agreement negotiations were launched in 2007, but the two sides failed to reach an agreement. The negotiations were suspended in 2013 due to various issues, including market access, intellectual property rights, and labor and environmental standards.

Conclusion

India has been actively pursuing trade agreements with various countries and blocs to increase its exports and attract foreign investment. These agreements have played a crucial role in boosting the Indian economy and enhancing its global positioning. However, India still faces several challenges, including tariff disputes and market access. It is essential for India to continue working towards addressing these issues to further strengthen its trade relations with other countries.

X