India Adopts Cautious Approach to FTAs, Focuses on Protecting MSMEs and Farmers: Jaishankar

New Delhi, Dec 6 (KNN) In a significant policy articulation, External Affairs Minister S. Jaishankar emphasised the Indian government’s careful stance on Free Trade Agreements (FTAs), highlighting the need to protect the interests of Micro, Small, and Medium Enterprises (MSMEs) and farmers. 

Speaking on the Modi government’s approach, Jaishankar remarked, “The government has been very cautious on FTAs for two reasons: first, weighing the experiences and results of previous agreements; second, our concern for the impact on MSMEs.”

Jaishankar underscored the importance of prioritising domestic interests during trade negotiations. Pointing to India’s review of the ASEAN-India Trade in Goods Agreement, he stated, “We have been pressing for a review because we are concerned about its impact on manufacturing development in India. FTAs should not harm the Indian economy.”

On ongoing negotiations with the European Union (EU) and the United Kingdom (UK), Jaishankar described the discussions as complex. 

“These talks involve non-trade issues and, in the case of the EU, multiple members with differing interests. Overall, we believe these agreements will benefit us,” he explained.

Jaishankar also addressed the disruption of shipping routes in the Red Sea, highlighting India’s proactive response. “It is a big concern for us. We have deployed several Navy ships to mitigate the impact, as the disruption has significant economic consequences for India,” he noted.

He emphasised India’s strategic economic stakes in West Asia and the Middle East, stressing the importance of regional stability. 

“We are in touch with all major players, including Iran and Israel, advocating for a ceasefire and negotiations. Stability in the region is crucial for protecting our economic interests,” Jaishankar added.

India’s comprehensive strategy reflects a balance between international engagement and safeguarding domestic priorities, underscoring its evolving economic and diplomatic posture.

(KNN Bureau)