Indian Economy News

India’s FTAs with Developed Economies to Support Growth, Innovation, Quality Upgradation and Job Creation

Union Minister of Commerce and Industry Mr. Piyush Goyal highlighted India’s strategy of deepening economic engagement with developed nations through Free Trade Agreements (FTAs) while addressing the 5th Annual Meeting of India Global Innovation Connect in New Delhi. The statement noted that FTAs are designed to support India’s long-term growth ambitions by expanding global trade, attracting investments, fostering innovation, creating employment opportunities and strengthening participation in global value chains. Referring to the Trade and Economic Partnership Agreement (TEPA) signed with the European Free Trade Association (EFTA), comprising Switzerland, Norway, Liechtenstein and Iceland, the statement noted that the agreement provides a robust framework for trade, investment and innovation-led partnerships. Under the pact, EFTA countries have committed to invest Rs. 9.26 lakh crore (US$ 100 billion) in India over 15 years and support the creation of one million direct jobs. The statement further emphasized that India’s partnerships with developed economies are based on complementarity, combining India’s youthful workforce, competitive costs and large domestic market with global capital, technology and expertise.

The statement noted that India has concluded nine FTAs in the last three to three-and-a-half years, covering 38 countries and opening access to new markets and emerging technologies. It further highlighted ongoing reforms aimed at improving ease of doing business, simplifying taxation and creating a predictable investment environment. The statement also underscored India’s infrastructure transformation, unified national power grid of over 500 GW and growing renewable energy capacity, which together enhance the country’s attractiveness for manufacturing and data centres. Stressing the importance of innovation-led growth, the statement informed that the Government’s research and development innovation fund of Rs. 1 lakh crore (US$ 10.83 billion) has commenced operations, with the first projects already approved. The statement expressed confidence that trade partnerships, innovation, infrastructure development and global engagement will play a pivotal role in India’s economic transformation.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.