If India enters into Free Trade Agreements (FTAs) with other nations, then the growth of exports of India would depend upon which of the following?
- 1. Extent of tariff reduction vis-à-vis MFN tariffs
- 2. Extent of relaxation in terms of rules of origin
- 3. Extent of relaxation in sanitary and phytosanitary measures
- 4. Level of infrastructure in India
- 5. Income in nations with which India enters into FTAs
Select the correct answer using the code given below.
1, 3 and 4 only
1, 2 and 4 only
2, 3 and 5 only
1, 2, 3, 4 and 5
Answer is Right!
Answer is Wrong!
This question was previously asked in
UPSC CDS-1 – 2024
1. **Extent of tariff reduction:** Lower tariffs make Indian goods more competitive in partner markets.
2. **Rules of origin:** Lenient RoO ensure that a higher proportion of goods manufactured in India qualify for preferential FTA tariffs.
3. **Sanitary and phytosanitary measures:** Relaxations or clear standards for SPS measures facilitate exports of agricultural and food products.
4. **Infrastructure in India:** Efficient logistics, transportation, and port infrastructure reduce costs and improve reliability for exporters.
5. **Income in partner nations:** Higher economic growth and income levels in FTA partner countries lead to increased demand for imports, including those from India.