India's Expanding Trade Horizons: A Look at Key Free Trade Agreements
India has fortified its trade relations, having signed five significant Free Trade Agreements over the past five years. These include deals with Mauritius, UAE, Australia, EFTA, and the UK, with varying impacts on trade balance and foreign investments. India continues to negotiate several other trade agreements.
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In the past five years, India has strengthened its global trade partnerships, securing five pivotal Free Trade Agreements (FTAs), said Minister of State for Commerce and Industry Jitin Prasada in a written reply to the Rajya Sabha this week. Congress member Jebi Mather Hisham sought details on India's recent international trade deals and their implementations.
The agreements, established within this timeframe, feature the India-Mauritius Comprehensive Economic Cooperation and Partnership Agreement (CECPA) initiated in 2021, followed by the India-UAE Comprehensive Economic Partnership Agreement (CEPA) and the India-Australia Economic Cooperation and Trade Agreement (ECTA) in 2022. In 2024, India signed the India-European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA), with the India-UK Comprehensive Economic and Trade Agreement (CETA) to be enforced in 2025. Trade data indicates varied outcomes.
Under the India-Australia ECTA, exports experienced a 14% rise in 2023-24 followed by 8% in 2024-25, albeit maintaining a trade deficit. The agreement with Mauritius consistently showed a trade surplus, while significant growth in exports and imports was observed with the UAE, driven largely by petroleum products, despite a widening deficit. The India-UAE FTA also prompted growth in India's export of agricultural goods and pharmaceuticals along with an increase in Foreign Direct Investment, according to the minister's report.
Pending agreements such as the India-European Union Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA) await ratification from member parties and are expected to activate this year. India has completed negotiations with Oman for a Comprehensive Economic Partnership and continues advanced discussions for agreements with the EU, Australia, Sri Lanka, Peru, Chile, New Zealand, and the United States.
The nation is also revisiting and enhancing older trade agreements like the ASEAN-India Trade in Goods Agreement (2009) and the India-Korea CEPA (2009).
(With inputs from agencies.)
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