- India has signed several free-trade agreements (FTAs) with the EU and UK in recent years.
- The government is stressing the importance of increasing the utilization rates of these FTAs due to economic pressures.
- Factors contributing to this pressure include a growing current account deficit, declining foreign investment, and a depreciating rupee.
- Due to rising energy prices from the Iran conflict, India's macroeconomic outlook has become uncertain, prompting crisis measures to shield the economy.
- Economists have downgraded growth forecasts and expect a widening current account deficit, with the rupee under pressure as India heavily relies on oil imports.
- Policymakers are calling for reduced foreign currency consumption and have raised import tariffs on precious metals to stabilize the currency amid substantial capital outflows.
