How do trade agreements contribute to youth employment and skill development in India?

Trade agreements are formal arrangements between countries to facilitate trade and investment by reducing tariffs, removing barriers, and promoting cooperation. In India, such agreements can play a significant role in creating job opportunities and enhancing skill development, especially for the youth.

• Expansion of Export-Oriented Industries: Trade agreements open up access to new markets, leading to increased demand for Indian goods and services. Sectors like textiles, IT, pharmaceuticals, and agriculture often see growth, generating more jobs for young workers.
• Attraction of Foreign Investment: Easier trade rules encourage multinational companies to invest in India, setting up manufacturing units and service centers. This leads to direct and indirect employment, particularly for young graduates and skilled workers.
• Technology Transfer and Skill Upgradation: Collaboration with foreign companies brings in advanced technologies and global best practices. Indian youth working in these sectors get opportunities to learn new skills and upgrade themselves to international standards.
• Growth of Startups and Entrepreneurship: Trade agreements can simplify export procedures and provide better access to global markets. This encourages young entrepreneurs to start new businesses and participate in international trade.
• Development of Vocational and Technical Training: Increased demand for skilled labor motivates the government and private sector to invest in vocational training centers and skill development programs, tailored to industry needs.
• Boost to Services Sector: Agreements that cover services (like IT, education, healthcare) create more job opportunities for educated youth, especially in urban areas.
• Indirect Job Creation: Growth in trade-related logistics, warehousing, transport, and supply chain management creates additional employment opportunities for young people.