Free trade agreements can give exports a boost

India is facing an export slump. At a time when many other segments of the economy are recording healthy upswings, the exports have declined by 12.2 per cent during the April-February period of 2020-21. February has recorded a meagre rise of 0.67 per cent after 6.2 per cent and 0.1 per cent growth in the preceding months, showing that the economic recovery is far more fragile than envisaged earlier.
Even more worrying is the fact that the two biggest areas, petroleum products and gems and jewellery, have fallen by 20 per cent and 11 per cent, respectively. There may be some reason to cheer as exports of pharma products have risen by 16 per cent, but this is not enough to stem the decline in other sectors.