Public sentiment about India's economic growth and Free Trade Agreements (FTAs) is divided. While there is cautious optimism regarding the government’s efforts to boost exports and reduce dependency on China through FTAs, significant concerns exist about their potential negative impact on local industries and the increasing trade deficit. Many commenters demand greater transparency, accountability, and better terms in trade agreements to protect domestic interests.

Government of India

Local Industries

ASEAN Member Countries

As someone who has written extensively on both Geopolitics and Finance topics on both Reddit and other platforms, I agree. FTA with USA is highly beneficial for India.

We are a highly price sensitive market. This makes nearly all of the US products non competitive in India even after tariff removal. They also cannot manufacture things in US at lower price than India. So, making products which can be afforded by Indian market would be impossible for them.

Meanwhile, US is the best market in the world to sell stuff. Getting any advantage there will highly boost our exports. China became China because of their ability to sell in US. America is a consumer-country. If you want scale in producing anything lucrative, you have to sell to American population. And that scale gives you access to the entire world's market.

Before 1991, India's market was highly restrictive, so much that even buying a good ballpoint pen was difficult. Getting a phone connection could take 5-10 years after application at BSNL. Buying cars or bikes also took 4-5 years preorder to get an ambassador. Removing restrictions helped accelerate our growth and made our industries more competitive. Airtel is now operating in lot of African countries, Bajaj and TVS are selling their two wheelers abroad.

There are lot of products that are unviable to be made for Indian market. For example, 600+cc bikes, because there are not enough buyers here who can afford it. This means, the cost of that factory would have to be shared by the few buyers, and that will mean cost going even higher, making entire project a failure. But, if you get access to US market, you solve that issue. 

We can go and dominate their market as our bikes will be cost effective there. Look at how Royal Enfield made 650cc bikes primarily for foreign market. Even its specs are EU focused. Making such higher end products will give more options for Indians while making a purchase. And it will trickle down the quality into lower priced products too.

Fdsn

😂😂 bruh

I ain't no expert but pretty sure it is not rainbow and sunshine as you imagine

fractured-butt-hole

No, our all local industries and agriculture sector will be destroyed.

BROWN-MUNDA_

Not possible to go all out in one go because a lot of the industry is built around the Tarrifs 

Suddenly removing all of them would cause problems 
Whatever the terms of a potential FTA are it should be gradually done not a full rush

just_a_human_1032

artesskibo

Tariffs are garbage economics. The only beneficiary of these protections are entrenched dinosaurs who would have been bankrupted long ago. 

Indian bureaucracy is incredibly dumb and economically illiterate. Don't expect sound economics from the state.

naughtforeternity

The same happened with USA-&gt; China. USA don't want another China to deal with. They learnt their less and won't ever transfer all/ most of their tech to another nation.

Diligent_Driver_5049



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                ](https://archive.is/submit/?submitid=&amp;url=https://www.firstpost.com/world/india-failed-to-benefit-from-fta-as-trade-deficit-with-asean-more-than-doubles-since-2010-13761033.html) | [Google Webcache - www.firstpost.com](http://webcache.googleusercontent.com/search?q=cache:https://www.firstpost.com/world/india-failed-to-benefit-from-fta-as-trade-deficit-with-asean-more-than-doubles-since-2010-13761033.html)


📣 **[Submission Statement by OP](/r/GeopoliticsIndia/comments/1c771bo/india_failed_to_benefit_from_fta_as_trade_deficit/l05tdv8/)**:
&gt; SS: India’s trade deficit with the Association of Southeast Asian Nations (ASEAN) has undergone a significant surge, more than doubling since the implementation of the Free Trade Agreement (FTA) in 2010.
&gt;
&gt;According to figures of Ministry of Commerce and Industry India’s exports to ASEAN member countries amounted to USD 25,627.89 million in the fiscal year 2010-11, while imports from these nations totaled USD 30,607.96 million.  However, over the past decade, the situation has deteriorated considerably, with the deficit expanding at an alarming rate.
&gt;
&gt;In the fiscal year 2022-2023, India’s exports to ASEAN countries reached USD 44,000.42 million, but imports surged far ahead, reaching USD 87,577.42 million during the same period. This sharp increase in imports not only eroded the gains from increased exports but also exacerbated the trade deficit, prompting concerns among policymakers and economists. 

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GeoIndModBot

Free trade means indian consumers have gained access to quality products from ASEAN while the rent seeking industrialists have lost 

If India wants to reduce the deficit , it should fix the judiciary , make bureaucracy less powerful and make it easy to do business 

Instead of addressing issues that are plaguing the economy , indian decision makers are trying to mask the weakness by adding layers of import taxes 

Import taxes have always been bad to the consumers and only benefit the parasites . Even Pakistani governments do the same

noxx1234567

SS: India’s trade deficit with the Association of Southeast Asian Nations (ASEAN) has undergone a significant surge, more than doubling since the implementation of the Free Trade Agreement (FTA) in 2010.
According to figures of Ministry of Commerce and Industry India’s exports to ASEAN member countries amounted to USD 25,627.89 million in the fiscal year 2010-11, while imports from these nations totaled USD 30,607.96 million.  However, over the past decade, the situation has deteriorated considerably, with the deficit expanding at an alarming rate.
In the fiscal year 2022-2023, India’s exports to ASEAN countries reached USD 44,000.42 million, but imports surged far ahead, reaching USD 87,577.42 million during the same period. This sharp increase in imports not only eroded the gains from increased exports but also exacerbated the trade deficit, prompting concerns among policymakers and economists.

Consistent-Figure820

#####&amp;#009;

######&amp;#009;

####&amp;#009;

&gt; # [India failed to benefit from FTA as trade deficit with ASEAN more than doubles since 2010](https://www.firstpost.com/world/675)
&gt; 
&gt;   
&gt;   
&gt; According to figures released by the Ministry of Commerce and Industry, India’s exports to ASEAN member countries stood at USD 25,627.89 million in the year 2010-11, while imports from these nations amounted to USD 30,607.96 million.
&gt; 
&gt; [India failed to benefit from FTA as trade deficit with ASEAN more than doubles since 2010](https://images.firstpost.com/uploads/2024/04/Representative-Image-32-2024-04-324ca77aee56dcfbfa2ba06fd7d16a97.jpg?im=FitAndFill=(596,336\) "India failed to benefit from FTA as trade deficit with ASEAN more than doubles since 2010")
&gt; 
&gt; 
&gt; 
&gt; India’s trade deficit with the Association of Southeast Asian Nations (ASEAN) has undergone a significant surge, more than doubling since the implementation of the Free Trade Agreement (FTA) in 2010.
&gt; 
&gt; According to figures of Ministry of Commerce and Industry India’s exports to ASEAN member countries amounted to USD 25,627.89 million in the fiscal year 2010-11, while imports from these nations totaled USD 30,607.96 million. However, over the past decade, the situation has deteriorated considerably, with the deficit expanding at an alarming rate.
&gt; 
&gt; In the fiscal year 2022-2023, India’s exports to ASEAN countries reached USD 44,000.42 million, but imports surged far ahead, reaching USD 87,577.42 million during the same period. This sharp increase in imports not only eroded the gains from increased exports but also exacerbated the trade deficit, prompting concerns among policymakers and economists.
&gt; 
&gt; ASEAN comprises 10 countries, including Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. India entered into an FTA in goods with the regional bloc in 2009, known as the ASEAN–India Free Trade Agreement (AIFTA). Subsequently, in 2014, an FTA in services was also included.
&gt; 
&gt; India had also signed the Comprehensive Economic Cooperation Agreement with various countries of Asean.
&gt; 
&gt; The trend continued into the fiscal year FY 2023-24 as well, available data from April 2023 to January 2024 painting a grim picture. India’s exports to ASEAN amounted to USD 32,713.01 million during this period. However, imports were recorded at USD 68,550.60 million.
&gt; 
&gt; The growth in imports from ASEAN countries has outpaced India’s export performance, raising concerns about the widening trade deficit and the need for a comprehensive examination of the underlying factors contributing to this disparity.
&gt; 
&gt; Since the inception of the Free Trade Agreement (FTA) between India and ASEAN in 2010, bilateral trade has steadily expanded, reaching USD 131.58 billion in the fiscal year 2022-23, but trade deficit also expanded in favour of ASEAN countries.
&gt; 
&gt; The ongoing review of the ASEAN-India Trade in Goods Agreement (AITIGA) aims to further enhance trade ties between the two regions in a balanced and sustainable manner, with both sides aiming to conclude the review by 2025.
&gt; 
&gt; The discrepancy in trade performance can be attributed to various factors, including India’s import policy evolution and tariff structures.
&gt; 
&gt; India’s transition from a restrictive trade policy regime to a more liberalized framework since 1991 has significantly influenced trade dynamics, leading to a surge in imports, particularly intermediate inputs.
&gt; 
&gt; Expert says, Import tariff rates have undergone fluctuations over the years, with the introduction of the Goods and Services Tax (GST) in 2017 marking a milestone in trade policy reforms.
&gt; 
&gt; While India has taken steps to streamline trade procedures and correct certain inversion of duties, challenges persist in achieving a more balanced trade relationship with ASEAN.
&gt; 
&gt; The need for continued efforts to enhance export competitiveness, diversify export baskets, and address structural constraints in key sectors is paramount to narrowing the trade gap.
&gt; 
&gt; Furthermore, the evolving global economic landscape and geopolitical dynamics necessitate a proactive approach towards fostering mutually beneficial trade relations between India and ASEAN.
&gt; 
&gt; Collaborative initiatives aimed at promoting trade facilitation, enhancing market access, and fostering innovation and technology exchange are essential to harnessing the full potential of the India-ASEAN partnership.
&gt; 
&gt; While India’s trade with ASEAN has witnessed significant growth, the persistent trade imbalance underscores the imperative for concerted efforts to foster a more equitable and sustainable trade ecosystem between the two regions.
&gt; 
&gt; Addressing the underlying structural challenges and leveraging opportunities for collaboration and mutual benefit will be pivotal in charting a path towards greater economic integration and prosperity.
&gt; 
&gt; _With inputs from agencies._

  
  
  
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empleadoEstatalBot

Mods, in each post, why do we have three comments that pretty much say the same thing? Can't we reduce this bloat?

basonjourne98

India needs free trade agreements in Services where it has a strong comparative advantage compared to manufactured products

george_karma

I think this is a wrong way of looking at things only in a relative manner. Have exports increased or not without looking at their relation to imports ? If they have then that's a success which should be built upon.

bamboo-forest-s

ASEAN have Raw material/Resource to export like Russia or Australia .   
They didn't have  advance technologies and will to sell like Japan or Israel  
  
What they produce is the same item we produce here., the FTA was stupid.

sajanpaulk

Yorker_length

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FuryDreams

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e10n

The issue with most of those FTA's is that they're very corporation friendly, and not much care is taken for consumer protection. Those trade agreements usually include extended copyright terms (which are already ridiculously long), and making it easy for outside competitors to flood the markets with inferior but cheaper products.

Jonne

I'm against TAFTA. Europe needs to entirely renegotiate its relationship with the US before being bound even closer to it.

I'd much rather see a FTA between Europe and South America first.

bluebottled

Nope, its only for a few units which will be booked by rand** politicians and babus.

Exciting_Strike5598

kiss_thechef

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Didnt they have CKD facility for most of JLR cars now which reduced the price?

EU and US deal in my opinion is much more interesting

pratyush_1991

Union Minister Piyush Goyal announced India is on track to become the world's third-largest economy by 2027, focusing on maximizing Free Trade Agreements.

India's Economic Growth and FTAs

Why This Matters

Public Sentiment Summary

Highlighted Comments

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What the people want