India, one of the fastest-growing economies in the world, has been actively pursuing preferential trade agreements (PTAs) to bolster its trade relations with other countries. Preferential trade agreements are agreements between two or more countries that give preferential treatment to each other by reducing tariffs and non-tariff barriers. These agreements aim to increase trade, investment, and economic growth by creating a more favorable trading environment.
India has signed several PTAs with countries around the world, including the South Asian Free Trade Area (SAFTA), the Asia-Pacific Trade Agreement (APTA), and the Comprehensive Economic Partnership Agreement (CEPA) with Japan. India is also currently negotiating PTAs with the European Union, Australia, and the United States.
The SAFTA, signed in 2006, is an agreement between the seven countries of South Asia, including India, Pakistan, Bangladesh, Sri Lanka, Nepal, Bhutan, and Maldives. Under the agreement, these countries have eliminated tariffs on a wide range of goods, making it easier for them to trade with each other. The SAFTA has helped boost intra-regional trade and promote economic growth in the region.
The APTA, signed in 1975, is an agreement between six countries in the Asia-Pacific region, including India, China, South Korea, Bangladesh, Laos, and Sri Lanka. The agreement aims to reduce tariffs and other trade barriers between the member countries. The APTA has helped to increase trade among its member countries and has also improved their economic ties.
The CEPA with Japan, signed in 2011, is a comprehensive free trade agreement between India and Japan. The agreement aims to promote trade and investment between the two countries by eliminating tariffs on a wide range of goods and services. The CEPA has helped improve economic ties between India and Japan and has also led to increased Japanese investment in India.
India’s negotiations with the European Union, Australia, and the United States for PTAs are still ongoing, with the aim of improving trade relations with these countries. India’s negotiation with the European Union is focused on the proposed India-EU Free Trade Agreement, which aims to eliminate tariffs on a wide range of goods and services. Negotiations with Australia and the United States are aimed at increasing trade and investment between these countries and India.
In conclusion, India’s pursuit of preferential trade agreements with other countries is aimed at promoting economic growth and improving trade relations. By reducing tariffs and other trade barriers, these agreements create a more favorable trading environment for India and its trading partners. India’s PTAs with other countries have led to increased trade and investment, improving economic ties and benefiting all parties involved.