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By:

Archita Gaur

13 June 2026 at 3:25:13 pm

The Economics of Next-Generation FTAs

While India is rewriting its trade strategy, market access will matter only if domestic industry can turn it into investment, jobs and deeper global value-chain integration. After years of cautiously pursuing Free Trade Agreements (FTAs), India has signed landmark deals with the United Kingdom and the European Free Trade Association (EFTA), while talks continue with several other major economies. The move reflects a broader strategy to deepen integration with global markets, attract...

The Economics of Next-Generation FTAs

While India is rewriting its trade strategy, market access will matter only if domestic industry can turn it into investment, jobs and deeper global value-chain integration. After years of cautiously pursuing Free Trade Agreements (FTAs), India has signed landmark deals with the United Kingdom and the European Free Trade Association (EFTA), while talks continue with several other major economies. The move reflects a broader strategy to deepen integration with global markets, attract investment, strengthen manufacturing, and diversify supply chains amid growing geopolitical and economic fragmentation. However, the success of these agreements cannot be measured in the number of deals signed or tariffs reduced. Their true value lies in strengthening export competitiveness, increasing participation in global value chains, generating quality employment, and enhancing long-run productivity. This article analyses the economic implications of India’s recent FTAs, the challenges to their effective implementation, and measures needed to maximize their benefits New Strategy India’s recent push towards FTAs marks a shift from its earlier cautious stance to trade liberalization. Concerns over widening trade deficits and impact of imports on domestic industries had earlier made India reluctant to pursue comprehensive FTAs, which was evident from its decision to remain outside the Regional Comprehensive Economic Partnership (RCEP). However, changing global dynamics, including supply chain disruptions, geopolitical realignments, and the “China+1” strategy, have prompted India to adopt a more proactive trade policy. Recent agreements with the United Kingdom and the European Free Trade Association (EFTA) emphasize expanding market access, attracting investment, and integrating more deeply into global value chains. Unlike traditional FTAs, which focus primarily on tariff reductions, India's recent agreements aim to promote deeper economic integration. The India–UK FTA expands market access for goods and services while including provisions on digital trade, intellectual property, government procurement, and mobility of professionals. Similarly, the India–EFTA Trade and Economic Partnership Agreement (TEPA) go beyond trade liberalization by combining tariff concessions with a landmark investment commitment of USD 100 billion over 15 years to support industrial growth and employment generation. These agreements reflect a shift in India’s trade strategy, focusing not just on expanding exports but also on attracting investment, facilitating technology transfer, bolstering supply chains and enhancing competitiveness of local industry. Their success, however, will hinge on strong implementation and competitiveness of domestic industries. Economic Impact Free trade agreements can promote economic growth by reducing trade barriers, expanding market access, and facilitating greater participation in global value chains. For India, recent FTAs are expected to boost exports in textile, pharmaceuticals, engineering goods and services while attracting greater foreign direct investment (FDI) through improved market access and investment provisions. Greater competition can also encourage domestic firms to innovate, improve productivity and achieve economies of scale. However, these gains are not automatic. Labour-intensive industries and MSMEs may struggle to compete with cheaper imports without adequate policy support. Tariff reductions may also lead to short-term revenue losses, while restrictive rules of origin and non-tariff measures may limit the full utilization of trade preferences. Moreover, Indian firms may be unable to fully capitalize on expanded market access without improvements in logistics, infrastructure, and the ease of doing business. Ultimately, the economic success of India’s FTAs will depend not only on the agreements themselves but also on complementary domestic reforms that enhance export competitiveness and strengthen industrial capacity. Although India’s recent FTAs offer significant economic opportunities, realizing their full benefits will depend on effective implementation and complementary domestic reforms. Several structural challenges could constrain the ability of Indian firms to fully capitalize on these agreements. MSMEs are particularly exposed. Many lack the technological capabilities, access to finance and compliance infrastructure required to meet international quality, environmental and sustainability standards. Export-readiness programmes, easier access to credit, technology upgradation and stronger institutional support can therefore be as important as the tariff concessions negotiated abroad. Rules of origin deserve particular attention. They are necessary to prevent trade diversion and ensure that preferential access benefits genuine producers, but excessive complexity can turn an FTA preference into an administrative burden. Simplifying procedures, strengthening customs coordination and making compliance easier for smaller exporters will be essential to improving utilisation. High logistics costs and infrastructure bottlenecks have long weakened India’s export competitiveness. A product that receives zero or low tariffs in a foreign market can still be uncompetitive if it is expensive or slow to move from an Indian factory to a foreign customer. This makes investments in multimodal transport, port modernisation, warehousing, customs digitisation and initiatives such as PM Gati Shakti central to the success of the new trade strategy. Faster clearances and more predictable logistics can effectively create a second layer of competitiveness alongside tariff preferences. The same applies to the broader ease of doing business. Reliable power, faster approvals, access to finance, skilled labour and predictable regulations are not peripheral issues in an FTA strategy. India’s next-generation FTAs represent a strategic shift from tariff-focused liberalisation towards deeper economic integration. They offer an opportunity to expand exports, attract investment, diversify supply chains and strengthen India’s position in global value chains. But the signing of an agreement should be seen as the beginning of the process, not its culmination. The more meaningful measure of success will be whether Indian firms increase their exports, whether new investment creates productive capacity, whether MSMEs enter global supply chains and whether workers gain access to better and more productive employment. (The writer is an economics postgraduate from Jawaharlal Nehru University with research interests in economic policy, trade and global governance. Views personal.)

Jalgaon grandpa, 75, sets Karaoke singing world record


Jalgaon: Age may be just a number, but for retired banker-cum-singer, Ramchandra D. Patil, his platinum jubilee year (75) has catapulted him into setting a world record.

 

The lifelong singing enthusiast from Jalgaon has officially entered the India Book of Records for the “Longest Live Singing on Karaoke Platform by a Septuagenarian,” performing continuously for 92 minutes in a program on September 25, 2025.

 

The achievement has thrilled the grandpa - who retired (2008) after 38 years’ service with the Peoples Cooperative Bank, Jalgaon - to set a target a higher and longer-lasting record.

 

“Music has been my passion since schooldays, specialising in songs of Mukesh as my voice closely resembles his. I have been singing for over six decades now… It's my life…” he smiled in a free-wheeling chat with The Perfect Voice.

 

Despite lacking formal training in vocal music, Patil began performing at school annual gatherings and later joined local orchestras while studying at M.J. College in the 1960s.

 

Later, he nimbly balanced his main banking career and crooning, ensuring none suffered whether he worked in his staid office cabin or under the arc lights on the stage.

 

Patil became a coveted, popular and familiar name during Ganeshotsav, Navratri, weddings or special events, his fame took him all over Maharashtra and even Odisha, Madhya Pradesh to perform on live stage.

 

Over the years, the musical career bloomed, he earned a good side income plus a name in the entertainment world, though he admits that ‘creating a world record never crossed my mind’.

 

Meanwhile, in 1967, the first of the modest Karaoke machines was invented, it became sophisticated by 1971, and in the next couple of decades, became a global sensation.

 

In India, Karaoke (meaning, ‘empty orchestra’) started trending around 2015, proving both a boon and bane for live performers, vocal and instrumental, but Patil embraced it heartily.

 

“Karaoke allowed me to perform solo with the original background music. It afforded me the freedom to explore a wider range of songs and programs. Plus, practising and rehearsals became easier, especially for new numbers that I took up,” Patil explained.

 

At the same time, it has increased competition, with ordinary home-folk also belting out numbers backed by Karaoke, compelling singers like Patil to slash rates, but the market opportunities have vastly increased.

 

Unmatched joy

While “the joy of performing live remains unmatched”, he said the brainwave of attempting a potential world record came almost by chance.

 

“In the past, I have sung continuously for over three hours many times, even at this age. We first checked out if anyone had attempted an official record in my age group, and found that there was none,” Patil recalled, of the Sep. 25 feat.

 

He humbly acknowledges that “the recognition is not merely a personal triumph, but a heartfelt tribute to all my musical idols”.

 

“Mukesh has always been my inspiration. But I also perform songs by Manna Dey and Mohammed Rafi, and lately, I’ve added a few Arijit Singh numbers too, which audiences love,” he said, hoping to expand his vocal horizon to more contemporary playback singers.

 

When asked about his favorite genre, Patil doesn’t hesitate: “The golden era of Bollywood music - the 1950s - will always be my favorite.”

 

Family backed the passionate singer

Patil’s doting family, comprising his wife Nita, their son Girish, daughters Swati Patil, Jyoti Patil-Deshmukh and Geeta Patil-Bhaskar have stood firmly behind him and his singing passion.

 

“We’ve grown up listening to him. Our mother Nita supported him throughout. His passion for music runs in our family now,” they declared, as Girish reached out to India Book of Records and Guinness World Records for their stamp of approval.

 

While Guinness’ confirmation is awaited, the India Book of Records verified and awarded Patil’s feat, presenting him with a certificate, medal, and badge.

 

Even at 75, the senior singer’s enthusiasm shows no signs of fading and he is now planning for more performances and possibly another record attempt, to make himself immortal in the timeless world of music.

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