India's trade trajectory: FTAs and beyond
Investment in manufacturing: The Production-Linked Incentive (PLI) scheme is invigorating India's manufacturing sector by strategically targeting 14 key industries, including electronics, automobiles, pharmaceuticals, and more. As a result, early signs of success are evident, especially in the electronics sector.
Increasing trade facilitation: The country has implemented various trade facilitation measures to combat high transaction costs and enhance the competitiveness of its exports. These measures and the digitalisation of business processes have streamlined cargo clearance, making it paperless and more efficient.
These initiatives have led to improved customs administration and reduced cargo release times across multiple ports and customs stations. Strong infra push: Over the last nine years, India has invested around USD7 trillion in new projects, driving an upswing in capital expenditures.
Further, there has been an uptake in the construction of highways/roads with 10,457 kms of roads constructed in FY22 as compared to 6,061 kms in FY16. This is coupled with the capital expenditure on railways infra and the aim of achieving 100% electrification by 2024.
Policy uptick towards increased investments: Over the past few years, India has taken considerable efforts for liberalising its foreign direct investment regime and increasing efficiencies in tax systems (GST – which unifies India as a market; Faceless assessments – which reduces physical interface; Advance Ruling Authorities - for upfront clarity on tax and customs; etc.). This, coupled with introduction of a National Intellectual Property Rights Policy in 2016, which signifies that the effective enforcement of the IPRs as a focus area for the Government, reduces
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