Regional Trade Agreements and Member Countries India

Regional trade agreements (RTAs) have been a common trend in recent years as countries strive to increase their international trade and compete globally. India, as a growing economic power, has been actively participating in RTAs.

RTAs are agreements between two or more countries within a particular region. The primary objective of RTAs is the reduction of trade barriers such as tariffs, quotas, and other restrictions. RTAs also aim to increase investments, support beneficial trade relationships, and enhance economic growth.

India is a member of several RTAs, including the South Asian Free Trade Area (SAFTA), the ASEAN-India Free Trade Area (AIFTA), and the India-Sri Lanka Free Trade Agreement (ISFTA). Let`s take a closer look at these RTAs.

SAFTA: India is a founding member of SAFTA, which is an agreement between eight South Asian countries. SAFTA aims to increase intra-regional trade by reducing tariffs and other trade barriers. India is the largest economy in the SAARC region, and the country is expected to benefit significantly from this agreement.

AIFTA: The ASEAN-India Free Trade Area (AIFTA) is an agreement between India and the Association of Southeast Asian Nations (ASEAN) countries. AIFTA is one of the most substantial trade agreements in the Asia-Pacific region. The agreement aims to eliminate tariffs on almost 90% of the goods traded between India and ASEAN countries, promoting free trade among the participating countries.

ISFTA: India and Sri Lanka signed the Free Trade Agreement in 1998, enabling duty-free trade between the two nations. The agreement aims to eliminate tariffs on a wide range of products, including agricultural goods, textiles, and industrial goods. ISFTA has been instrumental in increasing the trade between the two countries.

In addition to these RTAs, India is negotiating various other RTAs, including RCEP, India-EU FTA, India-UK FTA, and India-US FTA.

Regional trade agreements have been an essential tool for India to enhance its trade relations with various countries. With its active participation in several RTAs, India has been able to increase its access to various markets and goods, promoting economic growth and stability. It is vital for India to continue its participation in RTAs and strengthen its trade relationships with the global community.