Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
5) India’s experience with existing free trade agreements has been lukewarm so far, explain the underlying reasons and discuss what should be the way ahead to change this experience into a positive outcome. (250 words)
Why this question:
The article critically examines the Indian scenario of Free trade agreements and its effects on India’s economy.
Key demand of the question:
India signed a series of Free Trade Agreements (FTA) in Asia that came into force in the 2000s. Across industry and policy-makers, a view has emerged that these FTAs have not served India well, and even actively damaged Indian industry. Thus one has to analyse in detail the aspects of FTAs with respect to Indian economy.
Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.
Structure of the answer:
In brief define what FTAs are.
Explain in what way the success of an FTA should be judged against its objective of enhancing trade.
Discuss the factors responsible for such an effect and also suggest what steps should be taken to ensure better realization of the FTAs.
Conclude with way forward.