how can indian companies benefit from FTA in 2025

Indian companies can significantly benefit from Free Trade Agreements (FTAs) by gaining easier access to foreign markets, reducing trade costs through lower tariffs, and fostering greater competition and innovation. This leads to increased exports, enhanced foreign investment, and opportunities for growth and diversification. 

Here's a more detailed look at the benefits:

1. Expanded Market Access:

FTAs reduce or eliminate tariffs and other trade barriers, making it easier for Indian companies to export their goods and services to partner countries. 

This opens up new markets, allowing Indian businesses to tap into a wider customer base and potentially achieve higher sales and profitability. 

2. Reduced Trade Costs:

Lower tariffs on imports mean Indian companies can purchase raw materials and components at lower costs, leading to lower production costs and increased competitiveness.

This allows them to offer their products and services at more competitive prices in both domestic and foreign markets. 

3. Enhanced Foreign Investment:

FTAs can encourage foreign investment in India, as they create a more stable and predictable environment for businesses.

This can lead to increased capital inflows, technology transfer, and job creation, contributing to overall economic growth. 

4. Increased Competition and Innovation:

Exposure to foreign competition can stimulate innovation and efficiency improvements within Indian companies.

They are encouraged to develop higher-quality products and services, adapt to changing market demands, and find ways to reduce costs. 

5. Diversification of Trade Relations:

FTAs can help diversify India's trade relationships, reducing its reliance on specific markets or trading partners.

This provides greater stability and resilience to the Indian economy in the face of potential trade disruptions or economic downturns. 

6. Other Benefits:

FTAs can also lead to increased access to government contracts, improved intellectual property protection, and greater flexibility in how companies can operate in different markets.

They can also promote better cooperation on trade-related issues, such as standards and regulations.

Specific Examples of FTAs:

India-ASEAN FTA:

This FTA has been instrumental in boosting trade between India and the ASEAN region. 

India-Mauritius CECPA:

This agreement is India's first trade agreement with an African nation, expanding trade relations with the African continent. 

India-UAE CEPA:

This agreement has significantly boosted bilateral trade between India and the UAE. 

In addition to these specific agreements, India is also actively negotiating FTAs with other countries, including the European Union, Australia, and the United States. These FTAs have the potential to further expand market access and boost the Indian economy in 2025. 

Why are Ocean Freight Containers or Shipping Containers 20 feet and 40 feet long?

Ever wondered why shipping containers are 20 feet and 40 feet long, exactly? Why not 18, 36, or 50? The solution does not reside in port design or international control — but in one potent innovation that shook the world’s supply chains.

In the 1950s, American trucker Malcolm McLean had a problem: cargo loading was slow, inefficient and costly. Merchandise was being processed piece by piece. His groundbreaking idea? A standard metal box that could be loaded once, moved from truck to train to ship without unloading. And so the intermodal shipping container was born — along with the modern global supply chain.

But why was the original standard set at 20 feet?

It was a conscious, pragmatic choice. McLean wanted a size that would:

• Easily fit on a truck chassis, for easy highway transport

• Have no height, length or weight above accordingly through conventional rail cars

• Integrate into the cranes and forklifts of the 1950s, particularly at ports where infrastructure was light

• Find the right balance between volume and weight — neither so large as to be unwieldy, nor so small as to be inefficient

That 20-foot length was a happy medium for efficiency, safety, and versatility. Eventually the 40-foot container was brought on board to maximize volume per crane lift—it was twice the length of a 20-foot container, so scaling up was simple. Both lengths were officially standardized in 1968 by the International Organization for Standardization (ISO). Ports and infrastructure around the world adapted to this new system rather than defining it.

The result? So resilient that today, more than 90% of international trade is carried in containers—typically either 20 or 40 feet long. These containers are the foundation for just-in-time inventory, cross-border e-commerce, multi-modal logistics and every modern supply chain you can think of.

So the next time you encounter a shipping container, keep in mind — it’s more than just a steel box. This is the DNA of global trade, cast in a daring, pragmatic vision.