India Navigates FTAs with Caution, Prioritizes MSMEs and Farmers

The Indian government is cautiously approaching Free Trade Agreements (FTAs) to protect MSME and farmer interests, says External Affairs Minister S. Jaishankar. Emphasizing domestic considerations, he highlights ongoing EU and UK negotiations, concerns over ASEAN trade, and shipping disruptions in West Asia as impacting economic interests.

In a strategic move, the Indian government has adopted a cautious approach to forging Free Trade Agreements (FTAs), prioritizing the interests of Micro, Small, and Medium Enterprises (MSMEs) and farmers. External Affairs Minister S. Jaishankar revealed this policy stance, noting the government's attentiveness to past experiences and the potential impacts on small enterprises.

Jaishankar articulated the need for aligning trade negotiations with domestic policy objectives, underscoring the pressing need to reevaluate the ASEAN-India trade agreement due to its perceived adverse effects on the Indian manufacturing sector. He stressed that FTAs should bolster, rather than harm, the Indian economy.

Delving into ongoing trade talks with the European Union (EU) and the United Kingdom (UK), Jaishankar highlighted the complexity of these negotiations, which involve a myriad of non-trade-related issues. He expressed confidence that resolving these complexities will ultimately serve India's broader economic interests.

Addressing concerns over disrupted shipping routes in the Red Sea, Jaishankar described India's active efforts to mitigate the situation, including deploying Navy ships to counteract the economic impact. He stressed the significance of stability in West Asia and the Middle East to India's broader economic framework.

(With inputs from agencies.)