Centre cautious on FTAs to safeguard farmers and MSMEs: EAM Jaishankar

Speaking at an event, External Affairs Minister S Jaishankar spoke about India's resilience and post-Covid recovery along with its careful stance on free trade agreements

External Affairs Minister S. Jaishankar stated on Thursday that the central government has adopted a cautious approach to free trade agreements (FTAs) to protect the interests of farmers and MSMEs. Speaking at the Bharat@100 Summit hosted by Assocham in Delhi, he highlighted the importance of supporting MSMEs to build a resilient and robust economy.

 

The central government has maintained a careful stance on free trade agreements (FTAs) to safeguard the interests of farmers and micro, small, and medium enterprises (MSMEs), said External Affairs Minister S Jaishankar on Thursday. While addressing the Bharat@100 Summit hosted by ASSOCHAM in Delhi, the foreign minister emphasised the need to support MSMEs to ensure a resilient and thriving economy.

 

“In every country, how you look after MSMEs is the key to how you look after the economy,” he said.

 

Cautious approach to FTAs

Highlighting Prime Minister Narendra Modi’s careful stance on FTAs, Jaishankar said, “The Modi government has been cautious on FTAs for two reasons: Weighing the outcomes of past agreements and ensuring that FTAs do not adversely impact MSMEs or farmers.”

 

He pointed to concerns with the ASEAN-India trade in goods agreement, advocating for a review to prevent it from undermining India’s manufacturing sector.

 

Jaishankar also noted the complexities involved in negotiating FTAs with the EU and UK, where non-trade issues and diverse member interests complicate discussions. Emphasising the importance of finding a balance between opening markets and protecting domestic sectors, Jaishankar cautioned against becoming a “market for other countries”.

 

India’s post-Covid recovery

Jaishankar also pointed out how in comparison to several countries, India had managed to bounce back and come out stronger post-Covid-19 pandemic.

 

“When Covid first emerged in January 2020, there was widespread scepticism about India’s ability to manage the crisis. However, India has recovered better than many developed nations,” he said. He pointed out that Europe is still grappling with Covid-induced disruptions, compounded by the Ukraine conflict.

 

Jaishankar also highlighted India’s growing global influence, citing the successful launch of Chandrayaan-3. He said, “The world is interested in India and wants to engage with us. We must make it easier, profitable, and mutually beneficial for the world to collaborate with us.”