New Delhi [India]: External Affairs Minister S. Jaishankar, speaking at the Bharat @100 event organized by the Associated Chambers of Commerce and Industry of India (ASSOCHAM), emphasized the cautious approach of the Narendra Modi-led government towards Free Trade Agreements (FTAs).
Jaishankar noted that the government prioritizes the interests of farmers and MSMEs (Micro, Small, and Medium Enterprises) while negotiating trade deals.
“Modi government 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. We will always keep MSME interest and the interest of our farmers in mind when we negotiate FTAs,” Jaishankar said.
Balanced Trade Policies and Global Agreements
He highlighted the government’s demand for a review of the ASEAN-India Trade in Goods Agreement, voicing concerns about its impact on India’s manufacturing sector.
“We feel that that FTA should not become, in a way, damaging to the Indian economy. 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,” he said, stressing the need for a balanced approach to avoid over-dependence on single supply chains.
Jaishankar reiterated the government’s intent to ensure FTAs benefit India without hollowing out its industries, stating:
“We don’t want to end up as a market for other countries. We have to find the right balance here.”
Governance Over the Decade
Reflecting on the Modi administration’s decade-long governance, Jaishankar highlighted its resilience despite the Covid-19 pandemic.
“10 years… I would say, has stronger, better, more effective governance, 10 years and with the Covid break. When Covid first came, everybody thought that the biggest hit would be India. But if you look around the world, many countries, even developed ones, are not entirely recovered,” he noted.
He also observed that Europe continues to grapple with post-Covid challenges, compounded by the Ukraine conflict.
Global Interest in India
Jaishankar lauded India’s rising prominence on the global stage, citing the Chandrayaan-3 lunar landing as a milestone that has garnered international attention.
“The world is interested. The world wants to deal with us. We have to make it easier, profitable, and mutually advantageous. Today, there is a strong feeling globally to come to India,” he said, emphasizing the competition among nations for investment and economic partnerships.