New FTAs review of existing agreements can push exports

New FTAs review of existing agreements can push exports

Topic: Economy

In News: Over the last 25 years, the country has significantly diversified its export destinations, but more than 40 per cent of India’s exports is still accounted for by only seven countries, according to the Economic Survey released by the Finance Ministry.

About:

• India has been negotiating free trade agreements (FTAs) with several partners – both bilateral and regional – over the past many years with a view to promote India’s exports. A further push in this direction would help provide the institutional arrangements to diversify both products and destinations.
• India’s exports in April-December 2021 posted a 49.7 per cent growth (year-on-year) to $301.4 billion, but imports grew at a sharper rate of 68.9 percent to $443.8 billion during the period, more than doubling the trade deficit to $142.4 billion. This is a cause for concern and underlines the need for greater efforts to boost exports.
• The US remained the top export destination for India in April-November 2021, followed by United Arab Emirates and China.
• However, China’s share in India’s total imports reduced to15.5 per cent from 17.7 per cent in corresponding period a year earlier, reflecting increased diversification of India’s import sources.
• Belgium replaced Malaysia and entered into the top-10 leading export destinations during April-November 2021, with more than $1 billion worth of pearls, precious and semi-precious stones, and iron and steel shipped to the country.
• Other countries among India’s top ten export destinations include Bangladesh, Hong Kong, Singapore, the Netherlands, the UK and Germany.