India has adopted a careful and calculated strategy in its approach to Free Trade Agreements (FTAs), prioritizing the protection of Micro, Small, and Medium Enterprises (MSMEs) and farmers, said External Affairs Minister S. Jaishankar.
Jaishankar explained the rationale behind this cautious approach, emphasizing the government’s awareness of the need to balance trade benefits with domestic interests. “The Modi government has been very cautious on FTAs for two main reasons: one, the lessons learned from previous agreements, and two, our concern about their impact on MSMEs,” he said.
The Minister highlighted that protecting domestic industries, particularly MSMEs, remains a central focus when negotiating trade deals. He pointed out that India has been actively seeking a review of the ASEAN-India trading goods agreement, expressing concerns that the FTA could hinder the growth of India’s manufacturing sector. “We believe FTAs should not undermine the Indian economy,” Jaishankar added.
Regarding ongoing negotiations with the European Union (EU) and the United Kingdom (UK), Jaishankar acknowledged the complexity of the discussions, given the multitude of non-trade issues at play. “Negotiations with the EU and UK are complex because they involve many stakeholders, each with their own interests. However, we believe the outcomes will benefit us in the long run,” he said.
On the disruption of shipping routes in the Red Sea, Jaishankar outlined India’s proactive response to the issue, citing the deployment of several Navy ships in the region to mitigate its economic impact. “The disruption has had significant economic consequences for India,” he said, adding the country’s strong strategic interests in West Asia and the Middle East.
Jaishankar also emphasized the importance of regional stability for India’s economic well-being. “We have been in touch with major regional players, including Iran and Israel. Our aim is to ensure a ceasefire, initiate negotiations, and safeguard our economic interests,” he concluded.
(Inputs from ANI)