India is making significant strides on the international trade front, particularly as it continues discussions for various trade agreements. One of the most notable developments recently is with the European Free Trade Association (EFTA), involving Switzerland, Norway, Iceland, and Liechtenstein. Through the Trade and Economic Partnership Agreement (TEPA), which was settled earlier this year, there is considerable optimism around the prospect of boosting Indian exports and investments.
On November 23, Indian Commerce Secretary Sunil Barthwal, along with other officials, visited Norway to advocate for the TEPA. This agreement is poised to facilitate 99.6 percent of Indian exports, representing unprecedented opportunities for investors and industries. The harmonic relationship formed is particularly encouraging as India aims to leap from its position as the fifth largest economy to the third largest within the next few years.
During his discussions with Tomas Norvoll, Norway's State Secretary of the Ministry of Trade, Industry, and Fisheries, Barthwal emphasized how the TEPA could substantially benefit both Indian and Norwegian businesses. The dialogue deliberated on enhancing trade and investment prospects, encouraging mobility for skilled Indian professionals, and nurturing existing institutional collaborations.
Barthwal didn't stop there; he also engaged with key figures such as Cecilie Myrseth, Norway's Minister of Trade and Industry, and Jan Christian Vestre, the Minister of Health and Care Services. Further, meetings with members of the Norwegian Chamber of Commerce and various substantial Norwegian enterprises from sectors like renewable energy, shipping, textiles, and IT were conducted, showcasing India's diverse trade potential.
Reflecting on the broader picture, the EFTA has granted India access to 92.2 percent of its tariff lines related to non-agricultural products, allowing for reduced barriers on trade. This measure is expected to help boost both India’s 'Make in India' initiative and offers new opportunities for its young workforce, which is eminent for job creation.
On another front, India is also gearing up for the next phase of its trade negotiations with ASEAN countries, the Association of Southeast Asian Nations. The upcoming talks, scheduled for February next year, are part of the review for the ASEAN-India Trade in Goods Agreement (AITIGA). The existing frameworks are intended to facilitate smoother trade relations, with the last round of discussions concluding earlier this month.
A trip to Jakarta, Indonesia, will be on the agenda as officials aim to iron out details concerning aspects such as market access and customs procedures. The Indian ministry has expressed optimism for the talks, which aim to resolve long-standing business concerns and eliminate barriers to explore the potential for enhanced trade.
Importantly, ASEAN forms about 11 percent of India’s global trade, underscoring the strategic significance of these discussions. The review has been receptive to Indian industries demanding updates and flexibility to adapt the trade pact to contemporary economic realities.
Minister for Commerce Piyush Goyal has previously highlighted the pivotal role of the Asean partnership, especially considering the ever-evolving market dynamics. He has called for addressing local industry concerns during these negotiations to safeguard domestic interests whilst seeking growth opportunities abroad.
The performance metrics from these bilateral relationships continue to shine, with India and ASEAN recording unilateral trade of $121 billion for the fiscal year 2023-24, witnessing substantial growth during the initial months. The talks have also opened avenues for improved cooperation on numerous sectors, signifying India’s intent to align itself as a formidable trade partner.
While the global trade environment presents its challenges, especially post-pandemic, India's approach to fostering strong ties both with EFTA and ASEAN reflects its commitment to economic growth and adaptation. The concerted efforts of the Indian government to navigate these agreements frame the nation as not merely reactive but proactive within the international trade arena.
This strategy of engaging with diverse trading blocs is not only fundamental to augmenting trade figures but also indispensable for integrating Indian industries with global supply chains. With both EFTA and ASEAN following this momentum, the Indian economy is poised for accelerated growth, affording young professionals and burgeoning enterprises ample prospects on the global stage.
It remains to be seen how these discussions will evolve, but the foundational steps taken by India showcase its aspiration to solidify its place as a significant player on the world stage.
