Making FTAs more inclusive – A case for promoting SMEs in India

21 Pages Posted: 27 Apr 2022

See all articles by Anjali Tandon

Anjali Tandon

Institute for Studies in Industrial Development

Date Written: September 2020

Abstract

A dedicated support for SMEs through imparting information as well as addressing their concerns will not only improve prospects for SMEs, but will also contribute to greater utilization of the FTAs. While integrating into GVCs, standard compliance does not come easy due to lack of information and the additional costs imposed. The participation of SMEs in trade needs to be improved and strengthened through focussed interventions. With this view, a detailed review of the related provisions in the existing agreements provides useful leads through the mechanisms used. Although some FTAs with India as partner have SME related provisions, most others are silent on SMEs. In some cases, this is in sharp contrast to the presence of thorough provisions in the FTAs negotiated between (India’s) partner country and a third country. With forethought for bringing domestic SMEs in close contact with partner governments and business, recommendations are made for consideration while negotiating future FTAs.

Keywords: paperless trade, information asymmetry, small and medium enterprises

JEL Classification: D80, F1, L8, L15

Suggested Citation

Tandon, Anjali, Making FTAs more inclusive – A case for promoting SMEs in India (September 2020). Available at SSRN: https://ssrn.com/abstract=4086036 or http://dx.doi.org/10.2139/ssrn.4086036

Anjali Tandon (Contact Author)

Institute for Studies in Industrial Development ( email )

4, Institutional Area, P B No. 7513
Vasant Kunj, near The Grand Hotel
New Delhi, Delhi 110070
India

HOME PAGE: http://isid.org.in/

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