New Delhi [India], May 10 : Indian industries are looking forward to more free trade agreements (FTAs) because such trade pacts are the key enablers for participating in the global value chain, said Sanjiv Puri, President of the Confederation of Indian Industry (CII) and Managing Director of ITC.
ITC MD Puri said that after the FTA with the United Kingdom, the industry is also keen to have a trade deal with the United States.
"Industry is very keen to have the FTAs because these are important enablers to participate in global value chains, which are 70 per cent of the global trade. So, the industry is very much looking forward to it," CII President and ITC MD Sanjiv Puri said.
"We know that both the other FTAs are strong focuses of the government and there's a possibility of (Trade deal with) the US one by autumn and the EU - there was this EU president along with a large number of the cabinet ministers here in India - a commitment was made that by the end of the year they should get signed so we are hoping these within the timelines," Puri further added.
Puri went on to state that focusing on agriculture is needed to increase the income and consumption of the people employed by the sector.
Industry body CII welcomed the India-UK FTA, adding that it is guided by the 2030 Roadmap. The timely agreement will help advance a comprehensive strategic partnership between India and the UK, steering bilateral trade towards the ambitious target of USD 100 billion by 2030, the CII had added.
The Commerce and Industry Ministry on May 9 highlighted the importance of FTAs, adding that such trade agreements make India more competitive with markets like the United States of America, China, and Brazil.
According to APEDA, India will gain ground over the USA, China, and Thailand in processed food. We will become more competitive than the USA, China, Thailand, and Vietnam in bakery items, said an official.
The official statement added that the recently concluded FTA with the UK is a "totally job-orientated deal".
The trade between India and the UK will double by 2030, creating millions of jobs and increasing our overall exports to the UK.
However, the Global Trade Research Initiative (GTRI) in a report highlights potential risks to the domestic industry, especially Micro, Small and Medium Enterprises (MSMEs), due to increased foreign competition.
GTRI further adds that India should draw lessons from the recently concluded US-UK trade deal and be cautious on a deal with America for its bilateral trade deal.
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