India's Free Trade Agreements to Spur Export Growth, Job Creation
India's Free Trade Agreements to Boost Exports and Create Jobs
In a significant move, India has finalised nine free trade agreements (FTAs) in the last three and a half years, which will provide duty-free access to domestic goods, boost the country's exports, and generate lakhs of jobs for people. According to Commerce and Industry Minister Piyush Goyal, these agreements will help open new markets for the Indian industry and support them in their growth.
One of the most notable agreements was signed with New Zealand on March 27, giving duty-free access to 100 per cent of domestic exports, including textiles, leather footwear, and gems and jewellery, in the island nation. The pact is expected to be implemented by the end of this year, pending approval from New Zealand Parliament. In India, the Union cabinet will approve the trade pact.
The agreement with New Zealand is significant as it marks the second time India has received an FDI (foreign direct investment) commitment of USD 20 billion over 15 years. A similar commitment of USD 100 billion was made by the European nation bloc EFTA in its pact with India.
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The minister also expressed confidence in the BJP government's prospects in the upcoming state elections. He predicted that the BJP will form a government in West Bengal and an NDA-led government in Tamil Nadu. Additionally, he stated that the BJP and its allies are set to form governments in Assam and Puducherry.
Exit polls on Wednesday predicted a thumping victory for the BJP in Assam and a clear edge for the party over the ruling TMC in West Bengal. The polls also projected a return of the DMK government in Tamil Nadu and a comeback by the Congress-led UDF in Kerala after 10 years.
| State | Polling Dates | Exit Poll Projections |
|---|---|---|
| West Bengal | April 23 and 29 | BJP to form government |
| Tamil Nadu | April 23 | DMK to return to power |
| Assam | April 9 | BJP to win with a thumping majority |
| Kerala | April 9 | Congress-led UDF to make a comeback |
| Puducherry | April 9 | BJP and allies to form government |
The counting of votes for all five assemblies will be taken up on May 4.
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Investor Takeaway
India's free trade agreements may boost exports and create jobs, but the impact is medium-term.
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