In a welcome step, commerce ministry has constituted a committee to monitor implementation of India's recently signed FTAs, with a particular focus on obstacles preventing industry from using them to expand exports. Tracking non-tariff barriers in destination markets - including rules of origin, sanitary and phytosanitary requirements, technical standards, and certification hurdles - is essential, especially because MSMEs cannot benefit from FTAs while these frictions persist.
But the committee's mandate needs to go further. India's export profile is undergoing a structural shift. Traditional labour-intensive sectors now account for only a small and declining share of merchandise exports: 3.8% for textiles and clothing, 2.8% for marine products, and 2.0% for rice.
