Govt reviews impact of trade pacts on economy, employment

The government has reviewed the impact of free trade agreements (FTAs) on the domestic economy and employment generation. Sources said, the meeting of various ministries to discuss the preliminary findings of a report on these pacts was chaired by Finance Minister Arun Jaitley in New Delhi.

During the meeting, Chief Economic Advisor (CEA) Arvind Subramanian gave a presentation on the working of FTAs. Commerce and Industry Minister Nirmala Sitharaman, who attended the meeting, said the review of FTAs is a continuous process. India has implemented these agreements with several countries including Japan, Korea and Singapore as well as the ASEAN



group. 

It is also negotiating similar pacts with several regions, including the European Union, Australia, New Zealand and Canada. The Commerce Ministry is also pressing for better exchange rate policy, alignment of freight rates with global standards and a liberalised visa regime to boost shipments.

As part of the strategy to boost both exports of goods and services in the long run, the ministry is working on the three important pillars -- exchange rate, visa regime and freight rates. Textiles Minister Smriti Irani, NITI Aayog CEO Amitabh Kant, Commerce Secretary Rita Teaotia and other senior officials also attended the meeting.