India and Vietnam recently signed an FTA (Free Trade Agreement) on September 11, 2020. The agreement will facilitate trade and promote economic ties between the two countries. With the FTA in place, it is expected that the bilateral trade between India and Vietnam will grow exponentially.
Vietnam is one of the fastest-growing economies in Southeast Asia and has been able to achieve an impressive rate of growth over the past few years. On the other hand, India is the world`s fastest-growing major economy with an anticipated growth rate of around 7.5% in 2021-22. With both countries being major players in the Asian region, the agreement marks an important milestone in the development of their relationship.
The FTA agreement covers a wide range of sectors including textiles, chemicals, pharmaceuticals, and agricultural products. The FTA also includes provisions to reduce tariffs on goods. This will help Indian exporters to gain better access to the Vietnamese market as well as increase Vietnamese exports to India.
The FTA agreement is expected to boost economic growth and create employment opportunities in both countries. The reduction in trade barriers will bring down costs for businesses and consumers, making goods more affordable and accessible. The FTA agreement will also increase cooperation in areas such as investment, intellectual property right, technical barriers to trade, and e-commerce.
The signing of the FTA agreement comes at a time when the world is dealing with the COVID-19 pandemic. The pandemic has caused a significant slowdown in economic activity globally, and the FTA agreement is expected to play a critical role in supporting the economic recovery process in both countries.
In conclusion, the India Vietnam FTA agreement is set to create a win-win situation for both countries. The agreement will help boost trade and investment, leading to economic growth and job creation. By reducing trade barriers and promoting cooperation, the FTA agreement marks a new era of collaboration between India and Vietnam, bringing the two countries closer together.