India has signed numerous Free Trade Agreements (FTAs), but now it needs to focus on effectively monetising them.
Sanjeev Krishan, Chairman of PricewaterhouseCoopers India, stated that the adoption rate of FTAs in the country is low, estimated at 25-30%, compared to a global adoption rate of 75-85%. Countries that have successfully leveraged FTAs benefit much more than India.
Dependence on MSMEs
A significant part of improving FTA adoption depends on mid-sized corporations and Micro, Small, and Medium Enterprises (MSMEs), which require financial support and encouragement to effectively utilise these agreements.
Krishan made these comments at the Pune International Business Summit organised by the Mahratta Chambers of Commerce, Industries, and Agriculture (MCCIA) in Pune on Monday. He noted that substantial enabling steps were taken during this year’s Budget.
What did Sunil Kant Munjal say?
Sunil Kant Munjal, Chairman of Hero Enterprises, highlighted that the global opportunities arising from the “China plus one” strategy have been capitalised on by other countries such as Vietnam, Thailand, Indonesia, Malaysia, and Bangladesh, which have utilised these opportunities more effectively than India.
Munjal acknowledged that while India has been a late entrant into the global market, it has made significant strides through thoughtfully negotiated agreements with some of the largest markets in the world. The focus now needs to shift towards execution and establishing the right processes and systems.
For instance, effective data management and product traceability are critical to understanding customer needs and improving consistently. Only by doing this can India gain a competitive advantage in these large markets, Munjal said at the Business Summit in Pune. This presents a genuine opportunity for trade, industry, and agriculture in India to become a global player, especially with the nation being invited to engage in top-level discussions on the global stage, he said.