New Delhi [India]: External Affairs Minister S. Jaishankar outlined the Modi government’s strategic approach to Free Trade Agreements (FTAs), emphasizing the focus on protecting the interests of Micro, Small, and Medium Enterprises (MSMEs) and farmers.
Jaishankar explained the rationale behind this cautious stance:
“Modi govt has been very cautious on FTA for two reasons. Number one, weighing the experiences and the results of previous [FTAs] and number two, our concern for the impact of FTAs on MSMEs.”
Concerns Over ASEAN and Complex EU, UK Negotiations
Discussing the ASEAN-India Trade in Goods Agreement, Jaishankar noted the government’s insistence on a review to address concerns over its impact on India’s manufacturing sector.
“We feel that FTA should not become, in a way, damaging to the Indian economy,” he said.
He also highlighted the complexity of ongoing negotiations with the European Union (EU) and the United Kingdom (UK), which involve both trade and non-trade issues.
“When it comes to EU and UK, I think it’s complex, because there are many non-trade issues also, so those also have to be negotiated… Overall we believe that these will benefit us,” he added.
Addressing Red Sea Shipping Disruptions
Jaishankar expressed concern over the disruption of shipping routes in the Red Sea and elaborated on India’s efforts to mitigate the issue.
“It is a big concern for us. We have deployed several Navy ships in the region to mitigate the impact. The disruption has had a significant economic consequence for India.”
He emphasized the strategic importance of West Asia and the Middle East for India’s economic interests and called for stabilization in the region.
“We want a cooling down. We want a ceasefire. And we want negotiation so that actually our economic interests are not written,” he said.
India’s Proactive Engagement in the Middle East
Jaishankar highlighted India’s diplomatic engagement with key regional players, including Iran and Israel, to foster peace and maintain economic stability.
“We have been in touch with all the major players… We want negotiation so that our economic interests are safeguarded,” he said.