India’s recent FTAs indicate a shift from export maximisation to strategic trade diversification. Elaborate this statement in the context of the India–New Zealand FTA. Assess its relevance in a fragmenting global trade order.
Kartavya Desk Staff
Topic: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests
Topic: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests
Q4. India’s recent FTAs indicate a shift from export maximisation to strategic trade diversification. Elaborate this statement in the context of the India–New Zealand FTA. Assess its relevance in a fragmenting global trade order. (10 M)
Difficulty Level: Medium
Reference: TOI
Why the question Recent bilateral trade agreements reflect India’s response to global trade fragmentation, supply-chain disruptions and strategic uncertainty, making it important to assess how FTAs are being re-purposed beyond export expansion. Key Demand of the question The question requires explaining the shift in India’s FTA strategy from export maximisation to strategic trade diversification using the India–New Zealand FTA, and assessing its relevance in a fragmented global trade order. Structure of the Answer Introduction Briefly situate India’s evolving trade diplomacy against the backdrop of post-pandemic disruptions and weakening multilateral trade regimes. Body Elaborate the statement by showing how the India–New Zealand FTA reflects diversification in partners, sectors and instruments beyond goods exports. Assess the relevance of this shift in managing risks arising from a fragmenting global trade order. Conclusion Conclude by indicating how strategic diversification through FTAs can strengthen India’s economic resilience while complementing multilateral trade engagement.
Why the question Recent bilateral trade agreements reflect India’s response to global trade fragmentation, supply-chain disruptions and strategic uncertainty, making it important to assess how FTAs are being re-purposed beyond export expansion.
Key Demand of the question The question requires explaining the shift in India’s FTA strategy from export maximisation to strategic trade diversification using the India–New Zealand FTA, and assessing its relevance in a fragmented global trade order.
Structure of the Answer
Introduction Briefly situate India’s evolving trade diplomacy against the backdrop of post-pandemic disruptions and weakening multilateral trade regimes.
• Elaborate the statement by showing how the India–New Zealand FTA reflects diversification in partners, sectors and instruments beyond goods exports.
• Assess the relevance of this shift in managing risks arising from a fragmenting global trade order.
Conclusion Conclude by indicating how strategic diversification through FTAs can strengthen India’s economic resilience while complementing multilateral trade engagement.