India to achieve at least two more FTAs next year: Commerce Minister

India is engaged in Free Trade Agreements (FTAs) talks with a number of key economies, including the UK, Canada, the EU and the Gulf Co-operation Council (GCC)

December 30, 2022

The country has already initiated an FTA with Australia

A large number of sectors will benefit under the FTA

Experts expect FTAs with Canada and the UK in 2023

The total bilateral trade between Australia and India will reach US$ 70 billion in five years

India plans to achieve at least two more Free Trade Agreements (FTA) by the end of 2023, according to Commerce Minister Piyush Goyal. 

India is engaged in FTA talks with a number of key economies, including the UK, Canada, the EU and the Gulf Co-operation Council (GCC). The country has already initiated an FTA with Australia and plans to hold discussions for broadening it in January 2023. Moreover, experts expect FTAs with Canada and the UK in 2023. 

India entered into an FTA with Australia on 28 December 2022. Goyal at the India-Australia Economic Cooperation and Trade Agreement (ECTA) even mentioned that the Indian industry will receive duty-free access to a broad range of raw materials from Australia. This move is expected to improve the domestic industry’s competitiveness in manufacturing and exports.

A large number of sectors including textiles, gems and jewellery and also Information Technology (IT) will benefit under the FTA. From the first day of the agreement, 96.4% of India’s exports will get duty-free access to Australia. Furthermore, with the elimination of double taxation, the IT and Information Technology Enabled Services (ITeS) industry will likely save over US$ 1 billion over the next 5-7 years.

Media reports also said that the ECTA, signed on April 2, 2022, will almost double bilateral trade to US$ 45 billion over the next five years. Additionally, under the FTA, the total bilateral trade between Australia and India will reach US$ 70 billion in five years, according to a report by the Global Trade Research Initiative (GTRI). 


Source: Financial Express

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