India's Modern Trade Pacts: Paving the Way for Global Innovation Centers

India is in the throes of negotiating pivotal free trade agreements with the European Union and the United States, as revealed by Commerce Secretary Sunil Barthwal. Speaking at the CII GCC Business Summit, Barthwal highlighted the modern Free Trade Agreements (FTAs), which are extensive and encompass not just traditional trade but also services, innovation, and digital trade.

These FTAs aim to foster an environment conducive to global capability centres in India, coordinating on issues like intellectual property rights and regulatory harmonization. This marks a significant shift from old-style agreements focused solely on tariffs and manufacturing to complex deals addressing digital trade and innovation needs.

Barthwal emphasized the time-consuming nature of these negotiations due to their comprehensive approach, with a specific chapter on innovation in the FTA with the UK. The target is to provide businesses with regulatory certainty once these pacts are signed, promoting innovation corridors in India.

(With inputs from agencies.)