US, EU and UK aim to establish supply chains in India through free trade pacts

NEW DELHI: Three developed economies - the United States, the European Union, and the United Kingdom - want to establish a dependable supply chain in India as a result of proposed trade deals with New Delhi, according to people familiar with the matter, who added that the issue was discussed during recent visits by Indian officials to the United States and Europe.

The investment chapter of the proposed free trade agreements (FTAs) allows for mutually advantageous, cost-effective collaboration in a variety of manufacturing sectors, they stated, seeking anonymity. FTA partners can use each other's capabilities to construct sector-specific supply chains and become more competitive in worldwide markets, they said, adding that a free trade agreement between India and the United States would give Apple great confidence in establishing India as a manufacturing hub. According to sources, Apple aims to source all US iPhones from India in two years.

"Many multinational corporations in Europe are considering establishing comparable supply networks in India for their manufacturing endeavors. For them, India is cost competitive due to its skilled workforce, resources, and rule of law. "An FTA will protect their investments," one of them said, adding that the issue was also discussed with the other parties during the FTA negotiations.