In the world of international trade, negotiating agreements with developed nations poses a complex challenge for India. The intricate clauses, conditions, and terms involved require meticulous attention and effort to reach a consensus. Despite these hurdles, the Indian government’s dedication to finalising trade agreements is commendable.
India’s agri export policy, introduced over five years ago, aimed to diversify export destinations, boost high-value agricultural exports, and double India’s share in global agri exports by integrating into global value chains. A notable example of this effort is reflected in India’s merchandise exports to EFTA states for FY 2023, totalling $1.9 billion, with significant portions shipped to Switzerland and Norway.
However, the road to expanding India’s agri exports faces challenges, especially regarding tariff reductions under trade agreements with EFTA. While Switzerland offers tariff-free entry for various industrial goods, including chemicals and consumer products, agricultural products encounter stricter tariff commitments. This disparity highlights the complexity of trade negotiations and the need for a nuanced approach to enhance India’s agricultural exports.
Moreover, non-tariff measures, such as sanitary and phytosanitary regulations, play a crucial role in determining market access for Indian exporters. While trade agreements aim to address these barriers, their effectiveness in benefiting Indian agricultural exports remains uncertain.
Comparing post-trade agreement scenarios with India-Australia and India-UAE reveals contrasting outcomes. While agricultural exports surged post-FTA implementation, the sustainability of this growth hinges on various factors, including the impact of tariff reductions and non-tariff measures.
The government’s vigilance in evaluating the implementation of non-tariff measures will be crucial in fostering a conducive environment for India’s agricultural exports. Balancing tariff negotiations with non-tariff facilitation measures is essential for sustainable growth and market competitiveness in the global trade landscape.
