If India enters into Free Trade Agreements (FTAs) with other nations, then the growth of exports of India would depend upon which of the following? 1. Extent of tariff reduction vis-à-vis MFN tariffs 2. Extent of relaxation in terms of rules of origin 3. Extent of relaxation in sanitary and phytosanitary measures 4. Level of infrastructure in India 5. Income in nations with which India enters into FTAs Select the correct answer using the code given below. (a) 1, 3 and 4 only (b) 1, 2 and 4 only (c) 2, 3 and 5 only (d) 1, 2, 3, 4 and 5

India's export growth under Free Trade Agreements (FTAs) is determined by several interconnected factors. Tariff reductions relative to Most Favored Nation (MFN) rates directly influence price competitiveness [5]. Relaxation of 'Rules of Origin' (ROO) is critical, as stringent requirements often limit the ability of exporters to utilize FTA benefits [5]. Non-tariff barriers, specifically Sanitary and Phytosanitary (SPS) measures, significantly impact market access for agricultural and food products; their relaxation is a key objective in modern trade negotiations [6]. Domestically, the level of infrastructure determines the efficiency and cost of transporting goods, thereby affecting overall export competitiveness [5]. Finally, external demand is a primary driver; trade flows are directly proportional to the economic size (GDP/income) of the partner nations, as higher income in those countries leads to increased demand for Indian exports [4].

Sources

1. [1] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 13: International Organizations > Impact of these FTAs on trade: > p. 393
2. [5] https://www.indiabudget.gov.in/budget2016-2017/es2015-16/echapvol1-08.pdf
3. [6] https://www.sciencedirect.com/science/article/pii/S2110701725000976
4. [4] Macroeconomics (NCERT class XII 2025 ed.) > Chapter 6: Open Economy Macroeconomics > National Income Identity for an Open Economy > p. 97