Signing of FTAs is a start. Their success will be judged by gains in global market

Indian Express

Overview of the Article

The article argues that the real test of India’s recently signed Free Trade Agreements (FTAs) lies not in their announcement or legal ratification, but in their ability to translate into sustained gains in exports, market share and competitiveness. It adopts a results-oriented lens, shifting focus from diplomacy to delivery, and from intent to outcomes in global markets.

Key Arguments

FTAs as enabling frameworks, not guarantees
The article stresses that FTAs only create opportunities; firms must actually leverage tariff reductions, rules of origin and market access to gain ground internationally.

Competitiveness over concessions
India’s success will depend less on negotiated tariff cuts and more on domestic competitiveness—cost efficiency, quality standards, logistics and regulatory stability.

Non-tariff barriers as the real hurdle
Even where tariffs fall, non-tariff measures such as standards, compliance costs and certification requirements can limit export growth.

Manufacturing depth matters
The article highlights that shallow manufacturing and import dependence in intermediate goods constrain India’s ability to fully exploit FTAs.

Strategic diversification imperative
FTAs are positioned as part of India’s broader strategy to diversify export destinations and reduce over-reliance on a few markets, particularly amid global supply-chain realignments.

Author’s Stance and Bias

Stance
The author adopts a pragmatic and performance-driven stance, emphasising execution, competitiveness and reform rather than celebratory trade diplomacy.

Biases
There is a strong economic rationalist bias, privileging market outcomes and efficiency. Political, social and distributional impacts of FTAs receive limited attention.

Pros Highlighted

Clear metric for success
Export growth and market share are presented as concrete, measurable indicators of FTA effectiveness.

Policy realism
The article avoids over-selling FTAs and acknowledges that domestic reforms are decisive.

Alignment with global trade realities
Recognises that modern trade competitiveness hinges on supply chains, standards and productivity, not tariffs alone.

Cons and Limitations

Underplays adjustment costs
Sectoral disruptions, MSME vulnerability and labour displacement risks are not deeply examined.

Limited social perspective
The impact of FTAs on employment quality, wages and regional inequality is largely absent.

Assumes reform readiness
The argument presumes the state’s capacity to deliver deep structural reforms at speed.

Policy Implications

Domestic reform priority
Logistics efficiency, standards infrastructure, contract enforcement and regulatory predictability must accompany FTAs.

Export ecosystem strengthening
Support for MSMEs, access to finance, skilling and technology adoption becomes essential.

Targeted trade strategy
India needs sector-specific export strategies rather than a one-size-fits-all FTA approach.

Real-World Impact

For exporters, the message is unambiguous: FTAs reduce friction but do not substitute for competitiveness. For policymakers, the article reinforces that trade agreements will be judged by outcomes on factory floors and shipping docks, not negotiation tables. Failure to deliver export gains risks FTAs becoming politically contested rather than economically transformative.

UPSC GS Paper Linkages

GS Paper III – Indian Economy
Foreign trade, export competitiveness, manufacturing, logistics.

GS Paper II – International Relations
Economic diplomacy, trade agreements, strategic partnerships.

GS Paper III – Inclusive Growth
Impact of trade liberalisation on MSMEs and employment.

Conclusion and Future Perspective

The article makes a compelling case that FTAs are beginnings, not endpoints. India’s trade strategy will succeed only if agreements are matched by deep domestic reforms that lower costs, raise quality and integrate firms into global value chains. In the coming years, FTAs will be judged less by how many are signed and more by whether India’s share in global trade finally begins to rise in a sustained and broad-based manner.