Trade Agreements play a major role in boosting India’s Export

India's small and medium-sized businesses, known as MSMEs, play a big role in the country's economy. They make up nearly half of India's exports and contribute a significant chunk to the country's overall income. To help these businesses grow and sell more products abroad, India has made agreements with other countries called Free Trade Agreements or FTAs. These FTAs make it easier for Indian businesses to trade with other countries.

Here's how these agreements help Indian small businesses:

1. These agreements make it simpler for Indian businesses to connect with other countries and move their products around the world. The government provides training and financial help to these businesses.
2. The FTAs have rules that say if Indian businesses get their materials from the countries they have agreements with, they get special treatment in the global market.
3. These agreements reduce the costs and paperwork when Indian businesses send their products to other countries. It also lets them sell their stuff in new markets, not just the usual ones.
4. The FTAs make it easier for Indian businesses to sell their products in other countries by removing or lowering taxes and other trade barriers. This helps them grow and make more money.
5. Indian products become more competitive in the countries they have FTAs with because there are fewer trade restrictions and taxes. This can lead to more exports and higher prices for Indian products in the world market.
6. In addition to these benefits, Indian small businesses can also take part in programs with other countries, like in sectors such as aerospace, healthcare, and artificial intelligence, to help them grow.

But, it's important to know that not all of India's trade agreements have worked as well as they hoped. India has imported more from its FTA partners than it has exported to them in recent years. This means the country has bought more from other countries than it has sold to them.

The use of these agreements has been low, around 25%, while developed countries use them much more, around 70% to 80%. So, India is reviewing these agreements to make them work better.

The FTAs usually help small businesses sell more goods/services abroad, but it's also crucial to understand the specific terms of these agreements and the challenges each business faces. With support and better understanding, Indian businesses can help India become a stronger global economy.