Among other factors, a country’s economic health is determined by trade flows. The movement of goods across countries forms the backbone of international trade.
Small and medium businesses account for about half of India’s merchandise exports. This underlines the significance of the estimated 60 million micro, small and medium enterprises (MSMEs) that support India’s trade. Preparing for MSMEs’ integration into the global supply chain has become a key priority for India.
s (CEPA) with various countries involve complex policy making and reforms. The gains of such treaties may not be visible in the immediate context, but they can last for decades says Money Control.
The India-UAE CEPA connects India to the supply chain to the African continent. India and the UAE now trade $88 billion more than they did before the CEPA was signed in 2022, marking a rise of more than 38 percent. The two countries are looking to more than double non-oil bilateral trade to $100 billion by 2030. (Currently, non-oil bilateral trade stands at $48 billion.)
The Gulf Cooperation Council (GCC) has approached New Delhi to begin negotiations for a bilateral trade agreement on behalf of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE which are part of the GCC. Deep cultural exchanges, historical ties, and civilizational connections exist between India and the region. Both share a colonial past and independent-struggle conflicts. The Gulf nations contribute 50% of India’s yearly remittances of more than $80 billion. India relies heavily on the GCC nations for remittances, oil, and investment.
The India-Australia Economic Cooperation & Trade Agreement, which came into force last year, provides for an institutional mechanism to encourage and improve trade between the two countries.
The agreement between India and Australia covers almost all the tariff lines dealt in by India and Australia, respectively. India will benefit from preferential market access provided by Australia on 100 per cent of its tariff lines. This includes all the labor-intensive sectors of export from India, such as gems and jewellery, textiles, leather, footwear, furniture, food and agricultural products, engineering products, medical devices, and automobiles.
India and the United Kingdom are aiming for a Free Trade Agreement by November this year. The 12th round of talks took place on August 7.
The U.K. is seeking a cut in import duties on goods such as whiskey, automobiles, lamb meat, and certain confectioneries. India’s main exports to the U.K. are garments and textiles, gems and jewellery, engineering goods, petroleum and petrochemical products, transport equipment, spices, machinery and instruments, pharmaceuticals, and marine products, most of which are MSME-driven enterprises in India.
In May, negotiations for the Supply Chains (Pillar-II) Agreement, involving Australia, Brunei, Fiji, India, Indonesia, Japan, Republic of Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, Vietnam & USA, were substantially concluded during the second in-person Indo-Pacific Economic Framework Ministerial Meeting.
