India has been furiously negotiating deals ever since the RCEP came into force earlier this year.
The EU: Trade talks between India and the EU which began in 2007 have been in limbo since 2013 following disagreements over intellectual property rights and movement of professionals, among others. But now, with Russia and China closing ranks over the NATO reaction to the Ukraine war, the EU has been looking for new trade partners.
In late April, the President of the European Commission, Ursula Von Der Leyen, visited India and held meetings with Prime Minister Narendra Modi, President Ram Nath Kovind and External Affairs Minister S Jaishankar. The two sides have agreed to establish a trade and technology council which will allow India and the EU to address challenges in trade, trusted technology and security, deepening cooperation in these fields. The US is the only other country which has a similar agreement with the EU.
An initial round of negotiations on FTA are scheduled for June with an agreement hopefully in place by late 2023 or early 2024.
The UK: Even as the euphoria over the EC President's visit to India was yet to die down, the UK Prime Minister Boris Johnson visited India, kindling hopes of an FTA between the two countries.
Following a meeting between the two Prime Ministers, India and the UK have set an ambitious target of concluding a “comprehensive and balanced” FTA by Diwali this year to double bilateral trade by 2030.
According to India Exim Bank, a preferential trade agreement between the two countries could result in a rise of India’s imports by $2.3 billion, with an expected net revenue loss of $385.7 million. India’s exports could rise by $245.1 million with an expected net revenue loss of $110.5 million to the UK. With imports acting as inputs for the exported products, cheaper imports also reduce the cost of exports, thus making it more competitive in the international market, the study concluded.
Other countries: FTA talks between India and Israel are expected to begin in May, with a deal expected to be signed within a month. The total merchandise trade between the two countries was US$4.67 billion in FY 2020-21. India is also in bilateral trade talks with Namibia, South Africa and Canada.
With political compulsions and strategic interests increasingly dictating trade policies at the global level, India is all set to make hay.