India's FTAs: Fueling Global Supply Chains & Investment

India's latest free trade agreements (FTAs) are strategically crafted to enhance investor confidence by ensuring predictability and tariff stability for those looking to invest in global supply chains within the country. These modern pacts, developed over the past five to six years, aim to create a favorable environment for long-term investments.

These trade agreements grant businesses access to a substantial $60 trillion market, fostering a sense of security for investors. The predictability offered by these FTAs is crucial for managing complex international supply chains, where timely import of components and stable tariff structures are essential for efficient operations.

India has successfully negotiated trade pacts with several key partners, including the EU, UK, Oman, New Zealand, UAE, Australia, and the EFTA bloc. Notably, the FTA with the EFTA bloc has secured a $100 billion FDI commitment over 15 years, and New Zealand has pledged $20 billion in investments.

A significant objective of these FTAs is to diversify India's export basket, thereby de-risking its supply chains. By enabling exporters to reach multiple markets, such as ASEAN and Australia, these agreements promote sustainable export growth and reduce vulnerabilities.