The Economic Survey and Free Trade Agreements

As technology continues to develop and globalization becomes more prevalent worldwide, international trade becomes increasingly important. Governments typically utilize free trade agreements (FTAs) to empower their economies by reducing trade barriers between countries. The Economic Survey is a report that the government of India produces annually in which it evaluates its own economic performance, as well as outlines the economic environment both domestically and globally.

One particular section of the Economic Survey that is especially significant is the discussion of FTAs. International trade is becoming increasingly important to India because it helps in reducing the country’s dependency on domestic demand. India has entered into FTAs with various countries in an effort to increase its exports and improve its competitiveness in the global market. The Economic Survey evaluates the impact of these agreements on the Indian economy.

FTAs have been beneficial for India’s economy in many ways. One of the most significant is that they improve the competitiveness of Indian industries on the global stage. FTAs offer Indian industry easier access to international markets and more level playing field on which to do business. They provide Indian businesses with greater access to technological advancements, which can help generate more innovation and increase the efficiency of production.

At the same time, the Economic Survey acknowledges that FTAs have also had some negative impacts on India’s economy. There have been concerns that India is becoming too reliant on cheaper imports from other nations, which can have a negative impact on domestic industries. Additionally, there have been concerns that FTAs can lead to a loss of domestic jobs, as corporations may choose to outsource their operations to other countries where costs are lower than in India.

The government of India has made efforts to mitigate these negative impacts by working with domestic industries to make them more competitive on the global stage. Additionally, the government has implemented measures to encourage international companies to increase their investment in India in an effort to create new jobs and stimulate the domestic economy.

In conclusion, the Economic Survey is an important report that evaluates the current state of India’s economy, including the impact of FTAs. It highlights the various benefits and drawbacks of FTAs for the Indian economy and offers insights on how the government can work to maximize the benefits while also mitigating the negative impacts. With continued careful management, FTAs will continue playing a crucial role in ensuring India`s place in the global economy.