Parliament Question: India's Bilateral Trade

GOVERNMENT OF INDIA MINISTRY OF COMMERCE AND INDUSTRY DEPARTMENT OF COMMERCE LOK SABHA UNSTARRED QUESTION NO. 3794 ANSWERED ON 12/08/2025 INDIA’S BILATERAL TRADE 3794. Dr. D. PURANDESWARI: Will the Minister of COMMERCE AND INDUSTRY (वाणिज्य एवं उद्योग मंत्री) be pleased to state: (a) the data on India’s bilateral trade volumes and export performance with countries post-implementation of FTAs since 2020, State and year-wise; (b) the details of the data on the tariff elimination or reduction have taken place under new-generation FTAs and their impact on the trade balance; (c) the details of the mechanisms in place to conduct stakeholder consultations and industry outreach before entering into new FTAs; (d) the details of the steps have been taken by the Government to sign and operationalise FTAs with countries like the UAE, Australia, the UK and the EU in recent years and the results thereof; and (e) whether the Government has introduced a monitoring mechanism to assess sector- wise benefits, safeguard against dumping, and address domestic industry concerns arising from FTAs, if so, the details thereof? 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) to (e) India has signed 5 Free Trade Agreements (FTAs) with its trading partners since 2020 as follows: 1Sl. Name of the Agreement Date of Signing of Date of Implementation No. the Agreement of the Agreement 1 India - Mauritius Comprehensive 22nd February, 2021 1st April, 2021 Economic Cooperation and Partnership Agreement (CECPA) 2 India-UAE CEPA 18th February, 2022 1st May 2022 3 India-Australia Economic 2nd April, 2022 29 December 2022. Cooperation and Trade Agreement (Ind-Aus ECTA) 4 India-European Free Trade 10 March 2024 Will be implemented after Association (EFTA) Trade and ratification by EFTA Economic Partnership countries Agreement (TEPA) 5 India-UK Comprehensive 24 July 2025 Will be implemented after Economic and Trade Agreement ratification (CETA) The merchandise export, import and trade balance in respect of implemented FTAs of Mauritius, the United Arab Emirates and Australia are as under: India's Bilateral Trade with FTA Partner countries (Value in US $ Million) Country/Region Trade Flow 2020-21 2021-22 2022-23 2023-24 2024-25 Australia Export 4044 8283 6951 7941 8579 Import 8247 16756 19011 16159 15527 Mauritius Export 423 715 463 778 676 Import 43 72 91 73 211 United Arab Emirates Export 16680 28045 31609 35625 36636 Import 26623 44833 53232 48026 63423 Source-DGCIS For India-Australia ECTA, the exports have increased by 14% and 8% in year 2023- 24 and 2024-25 respectively. For India-UAE FTA, core imports in 2024-2025 included Petroleum: Crude, Petroleum Products, and other related commodities. India's exports of agricultural products and pharmaceuticals have registered growth. Additionally, the FTA has also led to a significant growth in Foreign Direct Investment. In FTAs, tariff reduction/elimination is implemented as per the tariff modalities agreed between the Parties. Products are classified into specific categories, namely: Tariff Elimination Immediate, where duties are reduced to zero on entry into force; Tariff 2Elimination Phased, wherein duties are eliminated over an agreed staging period (e.g., 3, 5, 7, 10 years); Tariff Reduction; and Tariff Rate Quotas. The details are given in the Annexure 1. The Department of Commerce is engaging in negotiations and reviews on trade agreements on an ongoing basis. Before entering into new FTA negotiations, a Joint Study Group is set up to study the feasibility of the proposed FTAs or an independent study is conducted, including their impact on the domestic industry. The government ensures that wide stakeholder consultations are held at all stages of the negotiations. This includes the pre-negotiation phase, each round of negotiations, and the post-conclusion phase, during the implementation of the agreements. Through these sector-specific consultations, domestic sensitivities and interests of farmers, MSMEs, etc, are carefully considered during the negotiations. The aim of FTAs is to generate benefits for industry, farmers, MSMEs and create job opportunities. FTAs are negotiated with the endeavour to deliver a comprehensive, balanced, broad-based and equitable agreement based on the principle of fairness and reciprocity. It also ensures a level playing field for Indian exporters vis-à- vis their competitors in the trading partner countries. In addition to this structured approach, post-implementation, the Department of Commerce is continuously engaged with all stakeholders, including industry, to advance trade through trade promotion, trade facilitation and remedial measures for elevating trade and economic growth. To protect the interests of the domestic industry, FTAs provide for maintaining sensitive, negative, or exclusion lists of items on which limited or no tariff concessions are granted. In addition, in case of surge in imports and injury to the domestic industry, a country is allowed to take recourse to trade remedial measures such as anti-dumping and safeguards on imports within the period as mutually agreed to by the parties under the FTAs. The FTAs include provisions on Technical Barriers to Trade to promote mutual understanding of each sides’ standards, technical regulations, and measures to enhance transparency. Additionally, FTAs address non-technical barriers, thereby facilitating smoother and more effective access to export markets for Indian goods. FTAs include sub- committees for review to align with emerging global requirements. ****** 3Annexure 1 Referred to in Part (a) to (e) in Lok Sabha Unstarred Question No. 3794 for reply on 12.8.2025 raised by Dr. D. PURANDESWARI, Hon’ble Member of Parliament on the subject India’s Bilateral Trade Tariff elimination or reduction under India-Australia ECTA India Australia Tariff modality No of lines % of total No of lines % of total (HS 8-digit lines (HS 8-digit lines level) level) TEI 4760 40.0% 6367 98.3% TEP (in 5/7/10 3601 30.2% 113 1.7% years) TR/TRQ 7 0.1% - - Exclusion 3540 29.7% - - Total lines 11908 100.0% 6480 100% Tariff elimination or reduction under India-UAE CEPA India UAE Tariff modality No of lines % of total No of lines % of total (HS 8-digit level) lines (HS 8-digit level) lines TEI 7694 64.61% 6090 80.33% TEP (in 5/7/10 years) 2401 20.16% 1269 16.74% TR/TRQ 656 5.51 35 0.46% Exclusion 1157 9.72 187 2.47% Total lines 11908 100% 7581 100% 4Tariff elimination or reduction under India- Mauritius CECPA India Mauritius Tariff modality No of lines % of total No of lines % of total (HS 8-digit level) lines (HS 8-digit level) lines TEI 38 5.56% 116 29.44% TEP (in 5/7/10 years) 338 49.49% 89 22.59% TR/TRQ 112 16.40% 79 20.05% Total Reduction 117 17.13% 16 4.06% Total MOP 10 1.46% 10 11.90% Exclusion 68 9.96% 84 21.32% Total lines 683 100.00% 394 100.00% Description of Tariff Modalities: TEI: Tariff Elimination Immediate TEP: Tariff Elimination Phased TR: Tariff Reduction TRQ: Tariff Rate Quota MoP: Margin of Preference 5