The Government is facing problems from farmers and textile industries due to losses incurred by them on account of a couple of free trade agreements (FTAs) signed recently by India.
This has prompted review of such agreements along with new deals undergoing negotiations.
Government is planning to avail tariff-rated quotas (TRQs) in all FTAs so as to protect the interest of farmers and small industries.
SOurces say that India is not able to get its rightful share of FTA benefits in most cases.
Top Government functionaries feel that Comprehensive Economic Cooperation Agreements (CECAs) are more beneficial as services element in such agreements would be in the country's favour.
The Asean FTA benefits are not equal for all players as in terms of aggregate trade potential, as benefit to Asean members and India is in the ratio of 1:4.
Indonesia and Philippines would be the major beneficiaries.
Jairam Ramesh, Minister of State for Commerce, has tried to impress upon the concerned authorities of the effects of Asean FTA.
The Prime Ministers Office, the Finance Ministry along with the Commerce Department, have also undertaken review of all such pacts in the light of the possible negative fallout on economy.
Export potential for Asean members like Indonesia, Malaysia, the Philippines, Singapore and Thailand was estimated to be around $10.2 billion with India's potential being $2.7 billion.
A joint study by Malaysian Institute of Economic Research and Indian Institute of Foreign trade brings out the fact that this is due to low export trade with India.
The study based on UNCTAD methodology used historic data to project future gains for the two FTA partners.
India has entered into a CECA agreement with Singapore and a separate FTA with Thailand.
An FTA is already in place for Sri Lanka with further talks going on for CECA.
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