Current Trade Agreements with India

Current Trade Agreements with India: A Comprehensive Overview

India, with its rapidly growing economy and over a billion consumers, is one of the world`s most attractive markets for trade and investment. The government of India has implemented several initiatives to promote foreign investment and increase trade with countries across the world. In this article, we will take a closer look at the current trade agreements that India has with other countries and how they have impacted the Indian economy.

1. ASEAN-India Free Trade Area (AIFTA)

The AIFTA agreement between India and the 10 member countries of the Association of Southeast Asian Nations (ASEAN) was signed in 2009 with the aim of creating a free trade zone. Since the agreement came into force in 2010, trade between India and ASEAN has increased significantly, reaching over $82 billion in 2019. The agreement has facilitated the elimination of tariffs on many goods, as well as the liberalization of trade in services and investments. The AIFTA agreement has strengthened economic and political ties between India and ASEAN, making this one of the most successful trade agreements signed by India.

2. Comprehensive Economic Cooperation Agreement (CECA) with Singapore

The CECA between India and Singapore was signed in 2005 and has been a significant contributor to the growth of bilateral trade between the two countries. The agreement has helped to reduce and eliminate tariffs on various goods, including pharmaceuticals, electronics, and textiles. It has also facilitated the movement of professionals and workers between the two countries, leading to an increase in cross-border investment. Singapore is currently India`s second-largest trading partner in ASEAN, and the CECA agreement has been instrumental in strengthening economic ties between the two nations.

3. India-Japan Comprehensive Economic Partnership Agreement (CEPA)

The India-Japan CEPA was signed in 2011 and has been instrumental in promoting bilateral trade between the two nations. Japan is one of the largest investors in India, with investments amounting to over $35 billion. The agreement has facilitated the liberalization of trade in goods and services, including the elimination of tariffs on many major products. Japan has also been a significant partner in India`s development efforts, providing technical and financial assistance in areas such as infrastructure, energy, and high-speed railways.

4. India-Korea Comprehensive Economic Partnership Agreement (CEPA)

The India-Korea CEPA was signed in 2009 and has been instrumental in promoting bilateral trade between the two nations. The agreement has eliminated tariffs on over 90% of the traded goods and has facilitated the liberalization of services and investments. Trade between the two nations reached over $21 billion in 2019, and Korea is currently India`s third-largest trading partner in Asia. The agreement has also led to increased collaboration in the areas of tourism, culture, and technology.

Conclusion

India has been actively pursuing trade agreements with several countries and regions across the world to promote economic growth and investment. The agreements have been instrumental in improving economic ties with other nations, facilitating the movement of goods and services, and promoting investment. The ASEAN-India Free Trade Area, Comprehensive Economic Cooperation Agreement with Singapore, India-Japan Comprehensive Economic Partnership Agreement, and India-Korea Comprehensive Economic Partnership Agreement are just a few of the successful trade agreements that India has signed in recent years. These agreements have not only strengthened economic ties but have also contributed to India`s growing status as a major player in the global marketplace.