The Free Trade Agreements signed by the Government of India provides opportunities for the Machine Tool industry to do the business with other countries. While the IMTMA helps in identifying the opportunities in other countries, here are the list of FTAs with other countries and their implication w.r.t machine tool industry
List of Various FTAs signed by India which has Impact on Machine Tool Industry
Indo-Asian Agreement came into effect from 2009: Under this agreement import duty will be zero from 2014
Indo-Korea FTA effective from 2009: Under this agreement import duty will be zero from 2016
Indo-Thailand FTA effective from 2006: Under this agreement import duty will be zero from 2017
Indo-Singapore Agreement is effective from 2007: Under this agreement import duty will be zero from 2011
India - MERCOSUR PTA: Under this agreement, 20% margin preference is proposed
India - Japan CEPA effective from August 2011: Under this agreement import duty will be zero by 2022
India - Malaysia CECA effective from July 2011: This agreement provides for more liberal tariff concessions than in ASEAN -INDIA trade in goods agreement
Agreements in the pipeline
Indo- EU FTA
Negotiations on a comprehensive free trade pact between India and the European Union, which began in June 2007, have reached an "advanced and delicate stage. So far, 13 rounds of negotiations have been held.
Indo – China FTA
The Joint Study Group was constituted and MEA is the nodal Ministry for the JSG.In pursuance to the recommendations of the JSG, Six meetings of the JTF have taken place. In its sixth meeting held on 21st and 22nd October 2007, the JTF has finalized its draft report on issues covering Trade in Goods, Trade in Services, Bilateral Investment, Trade Facilitation, and Economic Co-operation.
Indo – Australia FTA
India and Australia agreed in early 2008 to set up a Joint Study Group comprising government officials and research organizations to explore the feasibility of the Free Trade Agreement (FTA) between the two countries.
Indo – New Zealand FTA
India and New Zealand have already completed about five rounds of negotiations and are likely to sign FTA agreement by March 2012
Indo – US Commercial Dialogue
The Dialogue is a cooperative undertaking to facilitate regular discussion to deepen ties between the Indian and the American business communities. The Dialogue will encompass regular government-to-government meetings to be held in conjunction with private sector meetings. Its aim will be to (a) facilitate trade (b) maximize investment opportunities across a broad range of economic sectors, including information technology, infrastructure, biotechnology, and services.