India's FTA Utilisation At 20-30% Amid Compliance Costs & Tariff Distortions: GTRI
New Delhi, June 9 -- India is extracting far less value from its free trade agreements (FTAs) than its partners, with just 20-30 per cent of eligible exports utilising FTA preferences, compared with 60-70 per cent for exporters shipping goods into India - a disparity that particularly discourages small firms, according to the Global Trade Research Initiative (GTRI).
The think tank said on Tuesday that the asymmetry stems from a combination of high compliance costs, already low tariffs in partner countries, and structural distortions in India's tariff architecture - all of which blunt the practical benefits of trade pacts for Indian exporters while giving foreign suppliers a significant price advantage in the domestic market, PTI reported...
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