Parliament Question: Free Trade Agreement

GOVERNMENT OF INDIA MINISTRY OF COMMERCE AND INDUSTRY DEPARTMENT OF COMMERCE LOK SABHA UNSTARRED QUESTION NO. 3963 ANSWERED ON 17/03/2026 FREE TRADE AGREEMENT 3963. SHRI AMRA RAM: SHRI RAJA A: Will the Minister of COMMERCE AND INDUSTRY (वाणिज्य एवं उद्योग मंत्री) be pleased to state: (a) the names of the countries with which Free Trade Agreements (FTAs) have been made including the details of the said agreements and the tax which was being levied on the import and export before the agreement; (b) the details of the countries with which the agreement for agriculture and dairy products has been made by the Government; and (c) Whether any representations/complaints has received from stakeholders against such agreements which are detrimental to farm, dairy, MSME, textile, fisheries sector and if so, the response received? ANSWER वाणिज्य एवं उद्योग मंत्रालय में राज्यमंत्री (श्री णिणिन प्रसाद) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI JITIN PRASADA) (a) and (b) India has signed sixteen (16) Free Trade Agreements (FTAs) with its trading partners, as detailed at Annexure. In addition, FTA negotiations with New Zealand and the European Union have been concluded on 22nd December, 2025 and 27th January, 2026 respectively. Also, India and the United States of America have announced on 7th February 2026 that the USA and India have reached a framework for an Interim Agreement regarding reciprocal and mutually beneficial trade (Interim Agreement). FTAs are entered into with the concerned trading partner countries primarily with the aim of increasing bilateral trade through enlarging the scope of market access, securing duty reductions and to build on the trade complementarities for increasing trade and investment, thereby providing enhanced export potential and overall economic growth benefit to all the stakeholders. Prior to the signing of these agreements, exports to partner countries were subject to applicable MFN import duties, such as Basic Customs Duty (BCD) and applicable cesses across a wide range of products, including agricultural goods, dairy, textiles, fisheries, 1and other commodities. Post the FTAs, these tariffs have been reduced, ranging from complete elimination (zero duty) to partial cuts- thereby improving the competitiveness of Indian exports in partner markets, especially where competing countries already enjoyed zero or lower duty access. Given the Voluminous data, the details of agreement and tariffs structure of FTAs and the salient features of recent FTAs may be sourced at https://www.commerce.gov.in/international-trade/ and https://www.pib.gov.in/PressReleasePage.aspx?PRID=2236134&reg=3&lang=1 respectively. Brief features of recent FTAs are listed below: • India-European Union FTA: Preferential Market Access on 96.8% of tariff lines which covers 99.5% of India’s exports. 90.7% of exports (by trade value) to the EU to become duty-free on entry into force of the Agreement. • India–United States trade framework (announced 7 February 2026) with United States: India and the US have reached a framework for an interim agreement regarding reciprocal and mutually beneficial trade. The U.S. will provide preferential market access to Indian goods, including textile and apparel, leather and footwear, plastic and rubber, organic chemicals, home décor, artisanal products, certain machinery, etc. Subject to the conclusion of the Interim Agreement, the U.S. will reduce additional tariff on India to 0% on a wide range of products, such as gems and diamonds, aircraft parts, generic pharmaceuticals, certain machinery and parts, vegetable saps, certain instruments and apparatus, certain plastic and rubber, certain auto parts, etc • India–Oman Comprehensive Economic Partnership Agreement (CEPA): India has secured 100% duty-free market access for its exports, covering 98.08% of Oman’s tariff lines, representing 99.38% of India’s export value. Prior to the FTA, Oman’s tariff in the agriculture sector averaged 9%. • India - UK Comprehensive Economic and Trade Agreement (CETA) provides an unprecedented duty-free access to almost 99 per cent of India’s exports to the UK, covering nearly 100% of the trade value. All zero-duty concessions come into effect with entry into force. India’s major exports—from labor-intensive sectors like textiles, gems & jewellery, leather and footwear, organic chemical, artisanal products, and ceramics to high-value goods like auto parts, machinery, pharmaceuticals, and processed foods have gain with zero-duty access to the UK. • India–New Zealand FTA: New Zealand will provide 100% duty-free market access on all tariff lines, including agri-processed products, marine products, dairy products and other rural livelihood-based products from the entry into force of the agreement. Before this, Indian Exports faced duties upto 10% in labour-intensive sectors. • India–EFTA Trade and Economic Partnership Agreement (TEPA): India has secured a binding commitment from EFTA covering 92.2% of tariff lines (99.6% of India’s exports), including 100% of non-agricultural products and tariff concessions on Processed Agricultural Products Prior to FTA, duties on certain agricultural products were as high as 249%. Key agricultural concessions include zero duty on coffee, rice, cashews, shrimps, coconuts, pineapples, fruit juice, honey and malt. 2• India–Australia Economic Cooperation and Trade Agreement: In the FTA all exports of India including food, agricultural and marine products are eligible for zero-duty market access from 1 January 2026. Earlier, the import duty on key agricultural and marine products was up to 5%. • India and United Arab Emirates (UAE) Comprehensive Economic Partnership Agreement (CEPA): India has secured duty-free and preferential market access on 97% of UAE tariff lines covering 99% of India’s exports, with immediate duty elimination on over 80% of tariff lines, creating a transformational opportunity for Indian farmers, MSMES and other businesses. These agreements are expansive and broad-based in nature and cover multiple areas of trade and economic engagement, including commitments to investment in India (commitments of US $100 billion under EFTA and US$ 20 billion under India-New Zealand FTA) and thereby are not limited to the agriculture or dairy sectors. India adopts a calibrated approach to safeguard sensitive sectors of agriculture and dairy. Sensitive agricultural and dairy products have been placed in the exclusion lists and kept outside the scope of tariff liberalisation to safeguard the interests of domestic farmers. India has fully protected its sensitive agricultural sectors through an Exclusion Category, with no tariff concessions on key products such as Rice, Wheat, Poultry, Dairy, Soyameal, Maize, Millets, Groundnuts, Honey, Tobacco etc. For certain selected products, to meet domestic industry and consumer demand, limited market access has been provided and imports are regulated through restricted and monitored Tariff Rate Quotas (TRQs) and other safeguard mechanisms, including Minimum Import Price, Seasonal windows and linked Agricultural Productivity partnerships for assisting farmers boost agricultural productivity. This approach ensures national interest while simultaneously boosting India’s participation in global value chains. (c): The Government routinely receives representations and also proactively engages with industry bodies and other stakeholders in respect of various sectors, including agriculture, diary, MSMEs, fisheries, engineering, and others. Consultations with stakeholders are a continuous process and are undertaken before, during, and after trade negotiations, including during the implementation phase of FTAs, so as to ensure that the agreements are balanced, inclusive, and aligned with the interests and needs of all domestic stakeholders. Such representations are duly examined in consultation with the concerned Ministries/Departments and stakeholders. Institutional mechanisms such as Joint Committees and Sub-Committees constituted under the FTAs are also utilized to review implementation issues and address concerns of domestic industry. In addition, appropriate Rules of Origin, trade remedy measures, including safeguard mechanisms, are available under the FTAs to address any adverse impact of imports on domestic industry. FTAs are regularly monitored and reviewed to ensure that India’s trade and economic interests continue to be adequately safeguarded and remain aligned with national priorities. ***** 3Annexure ANNEXURE REFERRED TO IN REPLY TO PART (a) AND (b) OF THE LOK SABHA UNSTARRED QUESTION NO. 3963 FOR ANSWER ON 17.03.2026. Free Trade Agreements (FTAs) signed by India Date of Signing Sl. Name of the Date of Implementation of the of the No. Agreement Agreement Agreement 1 India - Sri Lanka FTA 28th December, 1st March, 2000 1998 2 Agreement on SAFTA 4th January, 2004 1st January, 2006 (Tariff concessions implemented from 1st July, 2006) 3 India Nepal Treaty of 27th October, This Treaty shall be automatically Trade 2009 extended for further periods of seven years at a time, unless either of the parties gives to the other a written notice, three months in advance, of its intention to terminate the Treaty. 4 India - Bhutan 17th January, Renewed periodically, with mutually Agreement on Trade 1972 agreed modifications. Agreement dated Commerce and 29th July 2006 was valid for 10 years. Transit With mutual consent, the validity was extended for a period of one year or the period till the proposed new Agreement comes into force. The renewed Agreement has been signed on 12.11.2016 and came into force with effect from 29 July 2017, for a period of 10 years. 5 India - Thailand FTA - 9th October, 2003 1st September, 2004 Early Harvest Scheme (EHS) 6 India - Singapore 29th June, 2005 1st August, 2005 CECA 7 India - ASEAN- CECA 13th August, 2009 Goods - Trade in Goods, for goods and Services and November 2014 • 1st January 2010 in respect of Investment for Services and India and Malaysia, Singapore, Agreement Investment Thailand. • 1st June 2010 in respect of India and Vietnam. • 1st September 2010 in respect of India and Myanmar. 4• 1st October 2010 in respect of India and Indonesia. • 1st November 2010 in respect of India and Brunei. • 24th January 2011 in respect of India and Laos. • 1st June 2011 in respect of India and the Philippines. • 1st August, 2011 in respect of India and Cambodia. Services and Investment 1st July, 2015 8 India - South Korea 7th August, 2009 1st January, 2010 CEPA 9 India - Japan CEPA 16th February, 1st August, 2011 2011 10 India - Malaysia 18th February, 1st July, 2011 CECA 2011 11 India - Mauritius 22nd February, 1st April, 2021 Comprehensive 2021 Economic Cooperation and Partnership Agreement (CECPA) 12 India-UAE CEPA 18th February, 1st May 2022 2022 13 India-Australia 2nd April, 2022 29th December 2022. Economic Cooperation and Trade Agreement (ECTA) 14 India-European Free 10th March 2024 01st October 2025 Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA) 15 India - UK 24th July 2025 Under ratification process Comprehensive Economic and Trade Agreement (CETA) 16 India – Oman 18th December Under ratification process Comprehensive 2025 Economic Partnership Agreement (CEPA) ***** 5