India has adopted a strategic and cautious approach to Free Trade Agreements (FTAs) to safeguard the interests of Micro, Small, and Medium Enterprises (MSMEs) and farmers, according to External Affairs Minister S Jaishankar.
Speaking about the Modi government’s rationale, Jaishankar said, “The government has been very cautious on FTAs for two reasons: learning from past experiences and addressing concerns about the impact of FTAs on MSMEs.” He stressed the importance of prioritising domestic interests while negotiating trade deals.
Discussing the ASEAN-India Trade in Goods Agreement, Jaishankar stated, “We have been pressing strongly for a review because of concerns about its impact on manufacturing development. FTAs should not harm the Indian economy.”
On ongoing trade negotiations with the European Union (EU) and the United Kingdom (UK), Jaishankar highlighted their complexity. “These discussions involve multiple stakeholders and non-trade issues. However, we believe these agreements will ultimately benefit India,” he noted.
Jaishankar also addressed disruptions in shipping routes in the Red Sea, emphasising India’s proactive measures. “The disruption is a significant concern with economic consequences. We’ve deployed Navy ships in the region to mitigate the impact and have engaged with key players, including Iran and Israel, to advocate for ceasefires and negotiations.”
Highlighting India’s economic stakes in West Asia and the Middle East, he underlined the importance of regional stability. “Stability in this region is crucial for our economic interests. We have been actively engaging with all major players to ensure that our logistics and economic ties are not adversely affected,” he added.