Free Trade Agreements have not served India well in terms of building capacities, said India's External Affairs Minister Subrahmanyam Jaishankar.

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The diplomat turned Foreign Minister said that FTA's today are considered as a bit of a mantra and as a panacea but facts prove otherwise.

"Our trade deficit with RCEP (Regional Comprehensive Economic Partnership) countries has doubled in 15 years. If you look at the state of the economy and manufacturing in the country you will not be able to look me in the eye and say these FTA's have served me well", he said. Jaishankar was speaking at the Hero Mindmine summit organised in partnership with CNBC-TV18.

The External Affairs Minister said that there are non-FTA-centric ways to engage the world, like improving our trade facilitation mechanisms and our place in the global value chain. Jaishankar further said India would have to look out for changes in the global economy, which is moving towards greater protectionism.

The minister's comments assume importance at a time when India is negotiating a trade deal with the United States and has established a high-level trade dialogue with the European Union. Earlier this year India walked out of RCEP due to an imbalance in trade with countries in the region and China in particular.

Jaishankar also said that India today has come a long way since the Non Aligned Movement and India in today's world is seen as part of a solution. "If we are to grow by leveraging the international situation, then you got to exploit the opportunities out there. Either you're in the game or you're not in the game. The era of great caution and an era of much greater dependence on multilateralism is behind us", he said. The foreign minister further said that India needed to step out more and take risks.

The United States has launched an all-out political war against China over trade, 5G, and its aggressive expansionist tendencies. America, which has made several statements in support of India's stand against China is trying to build a coalition of countries to check China in the Indo-Pacific. India is a member of the quad with the US, Japan, and Australia being the other members. India also supports the US idea of a free and open Indo-Pacific.

Jaishankar acknowledged the complexities in India's neighbourhood and said that relations between countries are driven by domestic politics. "India needs to create structural linkages with our neighbours. Strong structural linkages will ensure that politics do not impact relations", he said.

The foreign minister noted that China has posted an impressive economic record over four decades, while India was slow in opening up. "India’s challenge today is to grow faster and carry out deep reforms. Our manufacturing capability should be much better than what it is today. Lots of work to be done at home", he said.