As India is moving towards becoming a developed economy, the country would like to tap into newer areas that past free trade agreements (FTAs) did not cover, depending on the strengths and sensitivities of those involved, Commerce Secretary Sunil Barthwal said on July 25.
In the FTA between India and the United Kingdom (UK), New Delhi has agreed to limited concessions for sectors like automobiles, which the country has been reluctant to open up in past trade deals.
Elaborating on India's approach to trade deals, Barthwal said that FTAs cannot be one-sided.
"We want a friendship based on fair-play, equity and a deal that improves business opportunities of both nations, so it has to be mutually beneficial," Barthwal said.
Barthwal said that India's approach towards FTAs is to increase the strength of the two countries, "and also consider the sensitivities of both nations. The UK also did that, we also did that."
UK-India FTA, signed on July 24, has been able to achieve this balance of strength and sensitivities, Barthwal added.
Another government official, said that since India is a much bigger economy now, modern trade deals will include "new commitments in new areas".
"FTAs are bilateral, so the exclusion list in the India-UK FTA cannot be a template for all trade deals," this official said.
India has been able to exclude sensitive goods like dairy, cheese, wheat, rice, apples, oranges, soybean oil, palm oil, mustard oil, among others, from the trade deal with the UK, thereby protecting these sectors.
According to a third official, through the India-UK FTA, New Delhi attempted to "remove the label of tariff king. We have reduced tariffs on goods wherever we knew we could face the competition."
India is currently negotiating a slew of FTAs with the likes of the United States, European Union, New Zealand, among others.
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