United News of Bangladesh

A series of landmark trade agreements signed this year has pushed India firmly onto the global trade map, though experts warn the deals alone will not be enough to drive a sustained surge in exports. Even before March, New Delhi has concluded major trade pacts with the European Union and the United States, moves being described by officials as historic. Despite concerns that the interim agreement with Washington is skewed in favour of the US, the deals mark India’s 10th free trade agreement (FTA) since 2014 and signal a clear shift away from years of protectionism. Building on this momentum, India has also agreed to begin negotiations with the six-nation Gulf Cooperation Council, which accounts for about 15 percent of its global trade. Trade experts say the direction is positive but caution that FTAs are not a cure-all. India has traditionally made limited use of such agreements, with utilisation rates hovering around 25 percent, far below the 70 to 80 percent seen in advanced economies. Analysts point out that many Indian exporters, particularly smaller firms, struggle with complex paperwork, compliance costs and limited understanding of FTA provisions, often wiping out the benefits of lower tariffs. Data from consultancy firms show that while India’s exports to FTA partner countries grew moderately in recent years, imports rose much faster, highlighting weaknesses in leveraging preferential market access. More recent agreements with countries such as Australia and the United Arab Emirates have shown better results, helped by improved trade infrastructure and faster dispute resolution. Still, challenges remain significant. Exporters cite strict Rules of Origin requirements, high documentation costs, non-tariff barriers and inconsistent customs practices as major obstacles. Under the India-EU deal, exporters must self-certify product origin, shifting legal and financial risks directly onto businesses. Beyond technical reforms, experts stress that India must address deeper competitiveness issues to match Asian peers such as Vietnam and Bangladesh. Faster logistics, predictable customs clearance, reliable infrastructure and lower transaction costs are seen as critical. While India has made progress in high-tech manufacturing, including assembling smartphones for global brands, it continues to lag in labour-intensive sectors like textiles, footwear and furniture. With the trade deals now signed, analysts say the real test lies in execution. Streamlining regulations, cutting logistics costs and creating a more export-friendly ecosystem will be essential if India is to attract investment, generate jobs and reach its ambitious target of $1 trillion in annual exports.   With inputs from BBC