Modi’s fast-growing India ‘pulling out all the stops’ to edge out China as supply chain leader

India has now signed four FTAs in quick succession since 2021 after a gap of about nine years when no agreements were signed. The latest pact with the European bloc of countries, known as the European Free Trade Association, or EFTA, was hailed by Modi and comes just weeks before elections in which he’s seeking to extend his decade in power.

Negotiations with the UK and Australia are likely to culminate after the Indian elections in April-May, while talks with Oman have already concluded and an agreement may be signed as soon as this month, people familiar with the matter said, asking not to be identified because the negotiations are private.

The hope is that such deals will give a level playing field to India’s textiles sector, which comprise more than 14 per cent of the nation’s annual exports, employs more than 45 million people directly, and contributes more than 4 per cent to gross domestic product. Marine goods, auto and machine parts, chemicals, leather and footwear and gems and jewellery products are also poised to benefit.

To seize that opportunity, the South Asian nation must plug infrastructure gaps and improve the ease of doing business by cutting down on over regulation, taxation and red tape. “Delhi is pulling out all the stops. They know they must fix this,” Capri said.

By integrating into global value chains, India can create 80 million jobs by 2030, according to a government report.

The services sector, which makes up more than half of the nation’s GDP, is also expected to get a fillip. The trade deals will help India secure easier access for professionals in sectors including IT, health and accounting.

Tim Ayres, Australia’s assistant trade minister, said early results from the interim trade deal showed