India is still far from unlocking its full export potential

Flurry of trade deals must be matched by domestic manufacturing reforms

India’s accelerated trade deal activity since last year has justifiably cheered free trade advocates. However, it is not given that the bigger and better FTAs that India has concluded with the UK and EU will deliver all the anticipated gains.

The design of the older FTAs alone are not responsible for their poor performance. At the heart of the matter lies India’s weak domestic manufacturing capabilities. I argue in this Nikkei op-ed that for the new generation FTAs to deliver the economic and productivity gains of opening up, the domestic manufacturing reforms must pick pace.

Please click here to read the full piece on Nikkei Asia’s website.