Ashley Tellis Urges New Delhi To Consider FTA With US
NEW DELHI (ANI)- India must broaden its trade ambitions and eventually pursue a Free Trade Agreement with the United States, said Ashley J. Tellis, Tata Chair for Strategic Affairs and Senior Fellow at the Carnegie Endowment for International Peace.
Speaking on recent shifts in India’s trade policy, Tellis noted a significant transformation in approach over the years. “There has been a remarkable change in Indian policy on trade agreements. When Prime Minister Modi came into office, there was some skepticism around previous FTAs. But today, there is growing recognition that sustaining long-term economic growth depends on expanding global trade ties,” he said.
Responding to concerns raised by the Global Trade Research Initiative (GTRI), which cautioned against a comprehensive FTA with the US due to potential trade-offs, Tellis argued for a long-term vision.
“To my mind, we must not be looking for ways to escape. The ambition should be to have a genuine free trade agreement. Yes, it will take time and the developmental gaps between the US and India are large—but that goal should remain on the horizon,” he asserted.
On the possibility of a limited “Zero-to-Zero” tariff deal on 90 per cent of industrial goods, Tellis was supportive. “That should be the norm among friendly nations. I’d like to see such arrangements materialize not just with the US, but also with Europe and East Asia. In today’s world of diversified supply chains, tariffs on merchandise trade make little sense.”
GTRI had earlier recommended against a full-scale FTA, suggesting instead that India focus on limited tariff elimination deals, like the one Europe has offered the US. “Avoid a comprehensive FTA—it would force India into damaging concessions. A zero-for-zero deal on 90 per cent of industrial goods is a better path,” GTRI advised.
Commerce and Industry Minister Piyush Goyal has stated that the first phase of the Bilateral Trade Agreement with the US is expected to be finalized by fall 2025.
