India's trade has improved with different countries after signing of free trade agreements (FTA), Parliament was informed today.
"The overall effect on trade of an FTA is positive and statistically significant," Commerce and Industry Minister Nirmala Sitharaman said in a written reply to the Rajya Sabha.
She said the FTAs do provide opportunities for export of agricultural items, including processed and products of interest for macro, small and medium enterprises.
"The trade data with FTA partners, prior to and after implementation of the agreement, indicates that there has been a significant increase of our trade," she added.
Moreover, the minister said studies also indicate that increase in share of imports of raw materials, intermediate goods and capital goods could lead to enhanced efficiencies in domestic production and thus contribute to greater exports.
Before entering into negotiations with its trading partners, studies are undertaken internally as well as through the Joint Study Group to study the feasibility of the proposed FTAs, including its benefits for and impact on the domestic industry, she said further.
India has implemented FTAs with regions like Asean and the country is negotiating new pacts with its trading partners, including the European Union, Thailand, Mauritius, European Free Trade Association (EFTA), New Zealand, Israel and Gulf Cooperation Council.
Replying to a separate query, Sitharaman said that to promote trade in services, the government is following a multi-pronged strategy of negotiating meaningful market access through all forums, trade promotions and focussed strategies for specific markets and sectors.
"Further, there are domestic sectoral challenges and difficulties. These are identified and sought to be addressed through consultations with stakeholders," she said.
Services sectors like IT/TeS and logistic services are critical for the success of the 'Make in India' Programme.
"The substantive changes in the policy regime for foreign direct investment are expected to boost both industrial and service sector growth," she added.
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