Asean`s share of India`s total trade deficit increased from about 7% to 12% over the same period. The country also bled in its comprehensive economic partnership agreement with South Korea, where its deficit rose from $5 billion in 2009-10 to $12 billion in 2018-19. The story is similar with the Indeinem and Japanese free trade agreement called CEPA, which came into force on August 1, 2011. Despite this ideology, Mr. Modi has tried to satisfy the various interest groups and has made considerable progress in reforming the tax system and easing restrictions on foreign investment. But reasonable trade liberalization has always been too difficult. India`s last-minute withdrawal from negotiations on the Comprehensive Regional Economic Cooperation Agreement in 2019 indicated that domestic constituencies would triumph over free trade. With regard to India`s prospects, the Comprehensive Regional Economic Partnership (RCEP), which ended last year and is expected to soon be solemn among the other 15 Member States, stated that India had not joined because it did not address outstanding issues and concerns. Prime Minister Narendra Modi has called for a swift review of the ASEAN-India trade agreement, which has long been on hold at Thursday`s ASEAN-India virtual summit. In November 2012, Israeli President Shimon Peres said: “I think India is the greatest proof of the number of differences in the language, in sects that live with great suffering and can maintain full freedom.” [208] “We believe that we must work towards balanced, ambitious and mutually beneficial trade and investment agreements. At the 15th India-EU Summit in July 2020, we adopted the EU-India Strategic Partnership that will guide our future cooperation,” Goyal said at the EU-India diplomatic and industrial meeting on collaborative economic growth.

Neither country has had any particular success in negotiating free trade agreements with other countries in the world – the EU has just concluded an agreement with Vietnam. Each of them has a strong but chaotic democracy with many voices against free trade agreements. Each is a hard-working negotiator with a passionate commitment to their national interests. But the two can dream together and trade should be at the center of these dreams. Covid-19 has put an end to other measures in favour of trade liberalization. Last May, Modi promoted the policy of Atmanirbhar Bharat (Autonomous India) in response to India`s needs. Global concerns about supply chain resilience and exposure to China have been well received in India, fueling dreams of international companies relocating production lines from China. In 2007, Israel proposed the opening of negotiations for a free trade agreement with India, and in 2010, then-Indian Prime Minister Manmohan Singh accepted the proposal. [138] [139] The agreement will focus on many important economic sectors, including information technology, biotechnology, water management, pharmacy and agriculture. [140] In 2013, Naftali Bennett, then Israel`s economy minister, predicted a doubling of trade between the two countries from $5 billion to $10 billion if a free trade agreement was successfully negotiated. [139] Starting in 2015, negotiations for a free trade agreement will continue, with the two countries considering negotiating a closer free trade agreement on goods, followed by separate agreements on trade in investment and services.

[140] But even high import tariffs, which are reduced to zero by free trade agreements, do not guarantee exports.