The free trade agreement (FTA) between Singapore and India has been in talks for years, and finally, on August 7th, 2020, the agreement was signed. It is expected to bring both the countries` economies closer and deepen their bilateral trade relations.
What Is A Free Trade Agreement?
A free trade agreement is a pact between two or more countries to promote trade among them by eliminating tariffs and non-tariff barriers on goods and services. It helps to create a level playing field for all countries involved, leading to more competition and the growth of the international market.
Benefits of Singapore-India FTA
The Singapore-India FTA is expected to bring enormous benefits to both countries. Some of these benefits include:
1. Increase in Bilateral Trade
The FTA will significantly increase bilateral trade between Singapore and India by eliminating tariffs on various goods and services. It will also increase the flow of investments and drive economic growth.
2. Enhanced Business Opportunities
The FTA will create new business opportunities for both countries, leading to increased partnerships, collaborations, and investments. It will also help to promote innovation and entrepreneurship between Singapore and India.
3. Access to Wider Market
The FTA will provide Singapore and India with access to each other`s markets, leading to new market opportunities and increased competition. It will also allow businesses to expand their customer base and reach a wider audience.
4. Boost to Key Sectors
The Singapore-India FTA will boost the key sectors of both countries, such as electronics, pharmaceuticals, and food processing. It will also help to promote trade in services sectors like Information Technology, Financial Services, and Consultancy.
5. Closer Bilateral Relations
The FTA will bring Singapore and India closer, politically, and economically. It will foster a better understanding of each other`s economies, leading to more partnerships, collaborations, and people-to-people exchanges.
Conclusion
The Singapore-India FTA is a significant milestone for both countries in their journey to deepen their bilateral trade relations. It will help to create a level playing field for businesses, promote innovation, and drive economic growth. With the elimination of tariff barriers and the opening up of markets, the FTA will provide new opportunities for businesses and investors in both countries and bring them closer together.