India looking at FTAs for strategic considerations also, says Commerce Secretary
Outlook India | 14 August 2023
India looking at FTAs for strategic considerations also, says Commerce Secretary
by PTI
India is looking at Free Trade Agreements (FTAs) not only from the trade point of view but also keeping in mind the country’s strategic needs, especially with regard to the smooth supply of critical minerals, a top government official said on Monday.
Commerce Secretary Sunil Barthwal said that India is now looking at FTAs from the point of view of what is the country’s strategic needs in addition to trade.
For instance, batteries in electric vehicles require critical minerals. India is in talks with Australia for its smooth supplies.
South American nations of Peru and Chile also have huge reserves of the critical minerals.
India is looking at commencing negotiations for an FTA with Peru and Chile also has expressed interest for a trade pact.
"So, in addition to trade, now, we are looking at FTAs from the point of view of our strategic considerations. So, that is the fresh approach that we are taking in our FTAs," Barthwal told reporters here.
Normally in a trade agreement, two or more countries either significantly reduce or eliminate customs duties on a maximum number of goods traded between them. They Norms are also eased for facilitating trade in services and boost investments.
Securing a smooth supply of the critical minerals will help India in its energy transition.
Lithium, nickel, cobalt, manganese and graphite are among the key minerals used in batteries.
