India's been busy making trade agreements with big names like the US, UK, and the European Union. Think of these agreements like special deals that make buying and selling between countries easier. But, a new report suggests India might want to switch things up.
Why All the Trade Deals?
Countries like India sign trade deals to sell more of their stuff to other countries. India's been targeting those big economies because they've got lots of money to spend! The plan is to have deals done with nearly everyone but China by the end of 2024.Trading in the Fast Lane
India already has these fancy deals, called FTAs (Free Trade Agreements), with 22 countries. They're working on 49 more! If everything goes to plan, those deals will boost trading with a huge chunk of the world. And that's not all – India's got smaller deals with another 26 countries.The Catch
The thing is, a lot of India's new deals include things that aren't just about buying and selling. We're talking about rules on the environment, how workers are treated, and even how we use the internet. While good in theory, these new rules can make it harder for countries to manage things the way they want to.Big Deals, Mixed Results
The report says countries from all over the place want to make these deals with India, mostly because India loves buying stuff from other countries, and it's got a growing market. However, the deals India's already made with some key partners, like South Korea and Japan, haven't worked out quite as planned.Turns out, since those deals were signed, India's been buying way more from those countries than it's been selling to them. What's more, those countries have lots of products India can get without the deals, since they don't charge much (or anything!) to bring them in anyway.
What about deals with richer countries?
It's a similar story. The report says deals with places like Canada or the UK might not give Indian businesses much of a boost. Why? Because those countries already don't charge much to bring in most Indian stuff. India, on the other hand, charges more, so their stuff gets cheaper when the deals are signed.So, What's The Solution?
The experts behind the report have some ideas:- Focus less on big deals: India might be better off making smaller agreements focused on specific things it's really good at making.
- Think about real benefits: It's important to look at what's happening on the ground in those partner countries, not just what the agreement says on paper.
- New rules need careful thought: Those extra rules about the environment and workers? India needs to be very careful to make sure they don't limit how the country makes its own decisions.
Don't Get Fooled!
The report also busts some myths–like that all countries do most of their trading through deals like these, or that they somehow magically make everything cheaper.India's got to be smart and adaptable when making these trade deals. It's about what India can sell, but it's also about protecting what matters at home.
