An official has indicated that India possesses the capacity to withstand external economic shocks, attributing this resilience to robust domestic demand alongside prudent macroeconomic and financial sector policies. The official observed that the established rules-based trading framework, which has promoted globalization and free trade for over eight decades, is currently facing challenges. This situation has led to considerable fragmentation within the global economy and trade, characterized by the increasing influence of regional trade agreements.
In response to this shifting global landscape, India has actively reconfigured its trade engagements. The nation is a signatory to 14 free trade agreements (FTAs) and six preferential trade agreements (PTAs), with recent additions to its FTA portfolio including agreements with the U.K., Australia, and the UAE. Furthermore, India finalized a comprehensive Trade and Economic Partnership Agreement (TEPA) in March 2024 with the European Free Trade Association (EFTA) members, which comprise Iceland, Liechtenstein, Norway, and Switzerland. India is also actively engaged in ongoing FTA negotiations with several other entities, including the U.S., the EU, Peru, Oman, and New Zealand. The official underscored that India’s strong economic fundamentals and structural reforms have been crucial in enabling the country to navigate the complexities of the current global order.
Source: https://www.thehindu.com/news/national/maharashtra/india-could-withstand-external-shocks-due-to-strong-domestic-demand-and-economic-policies-shaktikanta-das/article70151776.ece