Benefits of Free trade agreement
How Free Trade Agreements Benefit India’s Agriculture Export
India’s participation in Free Trade Agreements (FTAs) with countries like ASEAN, Japan, and UAE has significantly impacted agricultural exports. These agreements reduce tariff barriers, simplify documentation, and enhance market access for Indian farm products.
FTAs promote bilateral trade, especially for processed foods, grains, spices, and dairy products. They also encourage joint ventures and attract foreign investment in India's agri-sector.
With rising global food demand, Indian exporters can use FTAs to tap into newer regions and expand product reach. However, to fully benefit, exporters must understand country-specific standards, labeling norms, and buyer preferences.
Government agencies like APEDA offer training and resources to help exporters leverage FTAs. For example, the India-UAE CEPA has opened massive opportunities in the Middle East for Indian agricultural goods.
Smart exporters should map potential FTA-linked markets and optimize their supply chain for compliance and cost-effectiveness. FTAs, when used strategically, can help India emerge as a key supplier in global food security.