Business · India Bureau
India's new trade pacts offer tariff certainty to global investors
India's recently concluded free trade agreements are designed to attract long-term investors by providing tariff predictability and access to vast markets, according to the country's top commerce official. The modern trade pacts, finalized over the past five to six years, aim to anchor global supply chain investments in India.
LSN India ·
India's new generation of free trade agreements have been structured to offer investors the regulatory certainty needed to establish complex, multi-country manufacturing operations within the country, Commerce Secretary Rajesh Agarwal said Thursday.
Speaking at an event hosted by the Public Affairs Forum of India, Agarwal emphasized that predictability in tariffs and trade flows is critical for attracting investment in global value chains. "These modern FTAs provide comfort to long-term investors looking to invest in global supply chains in India," he noted, adding that the agreements also provide access to a USD 60 trillion market.
The Commerce Secretary underscored the importance of tariff certainty in supply chain planning. In today's interconnected manufacturing environment, companies source components from multiple regions, process them domestically, and export finished goods to other markets. Such complex logistics require clear visibility on import and export duties across borders.
The pacts negotiated in recent years reflect India's effort to position itself as an attractive destination for multinational manufacturers seeking to diversify away from traditional production hubs. By combining tariff predictability with access to India's large domestic market, the trade agreements aim to encourage companies to establish long-term operations rather than temporary manufacturing arrangements.