In a significant move to boost its services economy, India is strategically leveraging Free Trade Agreement (FTA) negotiations to create new pathways for its skilled professionals in global markets. Commerce Secretary Sunil Barthwal emphasized that commitments within these trade pacts are key to unlocking international opportunities for India's vast talent pool in professional services.
Strategic Push in Trade Negotiations
Speaking at a national workshop organized by the Services Export Promotion Council (SEPC), Barthwal outlined the government's focused approach. He stated that India is actively pursuing specific commitments on the mobility of professionals and mutual recognition agreements (MRAs) in its ongoing FTA discussions with various countries and trade blocs. This is a core component of India's broader trade strategy.
The Secretary pointed out that while India has secured certain concessions in past agreements, the current negotiations aim for deeper and more structured access. The goal is to ensure that qualified Indian professionals in fields like accounting, architecture, nursing, and IT can have their credentials recognized abroad, easing their entry and practice in partner countries.
Building on Past Success and Future Goals
Barthwal cited the India-UAE Comprehensive Economic Partnership Agreement (CEPA) as a positive example. This pact includes a permanent safeguard for the automatic renewal of existing contracts for Indian service providers in the UAE, providing stability and predictability. Such models are being refined and pushed in other negotiations.
The workshop, themed 'FTA Strategy for the Services Sector,' brought together key stakeholders, including SEPC Chairman Sunil H Talati and DGFT Director General Santosh Kumar Sarangi. The consensus was clear: the services sector, which contributes over 50% to India's GDP, requires dedicated attention in trade deals to sustain its impressive growth trajectory in exports.
The Road Ahead for Services Exports
The government's strategy involves a two-pronged attack. First, it seeks to remove behind-the-border barriers faced by Indian service companies overseas. Second, and crucially, it aims to institutionalize the movement of Indian professionals through binding treaty obligations. This is seen as essential for moving up the value chain in global services trade.
Barthwal urged the services industry to actively engage with the government, providing detailed inputs and data on sector-specific barriers. This collaboration is vital for negotiators to build strong, evidence-based cases at the bargaining table. The ultimate objective is to translate India's demographic dividend and expertise into tangible, long-term market access, fueling job creation and economic growth.
With FTAs being negotiated with partners like the United Kingdom, the European Union, and Oman, the integration of robust services chapters has become a non-negotiable priority for New Delhi. The success of these efforts could redefine India's position in the global knowledge economy.
