Topic: GS-2: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.
GS-3: Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth.
4. There is a significant untapped potential to expand India-EU bilateral trade relation through an FTA. Elucidate. (250 words)
Reference: Financial Express
Why the question:
The article explains that there is a significant untapped potential to expand India-EU bilateral trade relation through an FTA.
Key Demand of the question:
Discuss in detail the possible untapped potential to expand India-EU bilateral trade relation through an FTA.
Directive:
Elucidate – Give a detailed account as to how and why it occurred, or what is the particular context. You must be defining key terms where ever appropriate, and substantiate with relevant associated facts.
Structure of the answer:
Introduction:
Start with brief background of the context of the question.
Body:
Explain first that after limited economic gains from its FTAs with Asian partners, India is reassessing its FTA options. While a good beginning has been made with the UK, India must also renegotiate with the EU—the bloc is very important for India as far as trade relations are concerned, and an FTA with the EU is, thus, based on sound reasoning.
Discuss that FTAs need to be designed in a manner that they enhance complementarities amongst partners and overcome regulatory hurdles that inhibit trade.
Account for potential of India –EU trade relations.
Present the challenges before India in realizing this potential.
Conclusion:
Suggest way forward and conclude.
