India-Peru Free Trade Agreement: A Win-Win for Both Nations
India and Peru have always shared a cordial relationship, and their bilateral trade has been steadily growing over the years. To further strengthen this relationship, India and Peru signed a Free Trade Agreement (FTA) in May 2019. The FTA is expected to boost trade, investments, and economic ties between the two nations.
Under the India-Peru FTA, both countries have agreed to significantly reduce customs duties on a wide range of goods. This will make it easier for Indian businesses to export products to Peru, and vice versa. Several sectors, including agriculture, pharmaceuticals, chemicals, and textiles, are expected to benefit from this agreement.
One of the key benefits of the FTA is that it will provide greater market access to Indian businesses in Peru, which has a population of over 30 million people. This will open up new opportunities for Indian companies to expand their footprint in South America. The FTA is also expected to reduce costs for businesses and consumers, as it will eliminate tariff barriers and promote fair competition.
The FTA is also expected to strengthen India`s strategic partnerships with other countries in the region. Peru is a member of the Pacific Alliance, a trade bloc comprising of Mexico, Colombia, and Chile. India is seeking to strengthen its ties with the region and join the Pacific Alliance as an observer. The FTA with Peru is a significant step in this direction.
Another important aspect of the India-Peru FTA is the focus on promoting sustainable development. Both countries have agreed to promote environmentally friendly practices and protect biodiversity. The FTA also includes provisions to protect intellectual property rights and promote innovation.
In conclusion, the India-Peru Free Trade Agreement is a significant development in the bilateral relationship of the two countries. It is expected to create new business opportunities, strengthen economic ties, and promote sustainable development. With the FTA in place, India and Peru can look forward to a brighter future of cooperation and growth.