INDIA is racing to wrap up a clutch of quick-fire bilateral trade pacts by the end of March next year, officials said, as economic necessity spurs a shift from New Delhi’s usual go-slow approach on trade deals. The shift also means that Prime Minister Narendra Modi’s government is prioritizing “early harvest” pacts over comprehensive free trade agreements with partners, a move that’s leaving some countries perplexed, officials said. Modi’s office is pushing ministries, particularly foreign and commerce, to deliver on initial deals with countries including Australia and the U.K., several officials said. That’s even as India walked away from Asia’s biggest multilateral agreement in 2019 and has shown little interest so far in a Trans-Pacific pact. For Modi’s ruling Bharatiya Janata Party, historically wary of being tied down to overseas deals and upsetting its loyal vote base of small traders, the emphasis on one-to-one quick trade deals is a U-turn of sorts after pushing for the need to be self-reliant. The stakes are high politically as Modi looks to revive an economy battered from the pandemic and attract more investment from the United States and its allies. The urgency to seal deals swiftly stems from the realization that the window of opportunity to benefit from the realignment of global supply chains may be short lived, according to officials. New Delhi is currently negotiating bilateral trade agreements with 20 nations and expects to complete half a dozen deals, including those with Australia and Britain by this Christmas and March next year respectively. This push for one-to-one trade agreements with emphasis on early harvest deals instead of comprehensive free trade agreements has perplexed at least two countries, the officials with knowledge of the talks said, asking not to be identified as talks were ongoing. India’s realization about the need to prioritize trade as a geopolitical strategy in turn has led to a bigger focus on pushing for higher exports and quick trade deals that can boost GDP growth, according to officials. In August, Modi himself conveyed the urgency as he addressed the heads of India’s overseas missions and urged them to help boost exports as global supply chains realign. While India announced manufacturing sops like production-linked incentives to attract global supply chains and create employment, these could take longer to show results, said Amitendu Palit, an economist specializing in international trade and investment at the National University of Singapore who worked for India’s finance ministry in the past. There has been growing pressure on the trade ministry to examine proposed deals more closely, the officials said. Commerce and Industry Minister Piyush Goyal has now set a steep target of US$400 billion for India’s annual merchandise exports for the fiscal year that ends in April 2022, almost 38 percent higher than US$290 billion recorded last year. He’s also seeking to push that number to US$2 trillion by the end of this decade. The target is a first for New Delhi after having side-stepped multilateral trade pacts since Modi came to power in 2014. His government has pushed for more self-reliance and a reduced dependence on imports. It was part of the reason India ended up walking away from the China-backed Regional Comprehensive Economic Partnership. India has “earned more trust” from trade partners during the pandemic by ensuring that not a single supply chain was disrupted, which has led to a surge in interest about signing agreements given the country’s economic growth plans, said a senior commerce ministry official. (SD-Agencies) | 