India adopted meticulous approach to FTAs to safeguard interests of MSMEs: S Jaishankar

The Indian government has adopted a meticulous approach to Free Trade Agreements (FTAs), focusing on safeguarding the interests of Micro, Small, and Medium Enterprises (MSMEs) and farmers, External Affairs Minister S Jaishankar said.

Highlighting the rationale behind this cautious stance, Jaishankar said, “Modi govt has been very cautious on FTA for two reasons. Number one, weighing the experiences and the results of previous and number two, our concern for the impact of FTAs on MSMEs.”

Jaishankar emphasized the importance of considering domestic interests while negotiating trade deals.

“We have been pressing very strongly For a review of the ASEAN India trading goods, agreement, because we have concerns about the impact of that FTA on the development of manufacturing in it, and we feel that FTA should not become, in a way, damaging to the Indian economy,” he explained.

Addressing ongoing negotiations with the European Union (EU) and the United Kingdom (UK), Jaishankar pointed to the complexity of these discussions.

He said, “When it comes to EU and UK, I think it’s complex, because there are many non-trade issues also, so those also have to be negotiated so and in the case of EU, because there are multiple members, everybody has their interest. Overall we benefit we believe that these will benefit us.”

On the disruption of shipping routes in the Red Sea, Jaishankar underscored India’s proactive measures to address the issue.

“It is a big concern for us. We have deployed several Navy ships in the region to mitigate the impact. The disruption has had a significant economic consequence for India,” he noted.

Jaishankar also highlighted India’s broader economic stakes in West Asia and the Middle East, explaining that the region’s stability is crucial for India’s economic interests.

He said, “It is a big concern for us, we have tried to do our share. We actually deployed some Navy ships as well, quite a few Navy ships there. It has disrupted logistics.”

“So we have actually been in touch with all the major players, including Iran and Israel. We want a cooling down. We want a cease fire. And we want negotiation so that actually our economic interests are not written,” he added.