Question 1 · 150 words written
Opening · a definition
Free trade agreements are between two or more countries to enhance international trade and reduce regulatory burden. Recently, India signed FTA with EFTA - TEPA, UAE - CEPA and Australia - CECA, while UK - India, and EU - India FTA are under negotiations.
Reason for increased focus -
Body · points
- To enhance India's participation in global value chain.
- To improve market access for Indian manufactured products.
- To provide stimulus to manufacturing sector - with stagnant GVA at 16-17%. (4) To generate employment for workforce. (5) To reduce costs for imported inputs and ease transfer of technology. (6) Improve FDI inflow in country eg: EFTA - TEPA has FDI committment. (7) Promote policy of "Make in India for the world". (8) Reduced efficiency of WTO.
Close · a summary
Thus, free trade agreements allow India to push for trade led growth achieving target of $2 trillion exports by 2030 as given in FTP-2023.