**Policy Summary: India's Approach to Free Trade Agreements and Farmer Protection**
This document summarizes the Indian government's response to concerns regarding the potential impact of Free Trade Agreements (FTAs), particularly with the United Kingdom, on Indian farmers and Micro, Small, and Medium Enterprises (MSMEs).
The government acknowledges farmers' concerns about opening the Indian market to British agricultural products with minimal tariffs or restrictions. In response, the government asserts that it is actively negotiating FTAs with various countries and regional blocs, including the European Union, Australia, Sri Lanka, Peru, Chile, New Zealand, and the USA, to expand India's global trade and enhance export competitiveness.
The government emphasizes its commitment to protecting the interests of farmers and domestic industries during FTA negotiations. Measures to safeguard these interests include:
* Maintaining sensitive, negative, or exclusion lists of items with limited or no tariff concessions.
* Employing trade remedial measures such as antidumping and safeguards on imports in case of import surges and injury to domestic industries.
* Developing Rules of Origin, including product-specific rules, through stakeholder consultations.
* Addressing Technical Barriers to Trade to promote mutual understanding of standards and regulations.
* Addressing non-technical barriers to facilitate smoother access to export markets.
* Establishing subcommittees for review to align with evolving global requirements.
The government states it has followed a similar approach while dealing with the UK to safeguard the interests of farmers and secure market access for Indian agricultural products.
The Minister of State for Agriculture and Farmers Welfare, Shri Ramnath Thakur, provided this response to Lok Sabha Unstarred Question No. 1577 on July 29, 2025.
Key Entities Referenced
Shri Sachithanantham R: Member of Parliament who raised the unstarred question in Lok Sabha.
British products: Agricultural and other products from the United Kingdom that are the subject of a potential trade agreement.
Indian farmers: Farmers in India whose livelihoods could be affected by the opening of the Indian market to foreign products.
MSMEs: Micro, Small, and Medium Enterprises in India whose growth could be affected by trade agreements.
SHRI RAMNATH THAKUR: Minister of State for Agriculture and Farmers Welfare, who provided the answer to the question.
India-European Union Free Trade Agreement: A trade agreement under negotiation between India and the European Union.
India-Australia Comprehensive Economic Cooperation Agreement: A trade agreement under negotiation between India and Australia.
India-Sri Lanka Economic and Technology Cooperation Agreement: A trade agreement under negotiation between India and Sri Lanka.
GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE & FARMERS WELFARE
DEPARTMENT OF AGRICULTURE & FARMERS WELFARE
LOK SABHA
UNSTARRED QUESTION NO. 1577
TO BE ANSWERED ON THE 29TH JULY 2025
OPENING OF INDIAN MARKET FOR BRITISH PRODUCTS
1577. Shri Sachithanantham R:
Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ िष एवं िकसान क(cid:670)ाण मं(cid:361)ी
be pleased to state:
(a) the response of the Government to the farmers concern that opening the Indian market
for British products, including its agricultural products, with virtually no tariffs or restrictions
may affect negatively livelihoods of millions of Indian farmers and also the growth of micro,
small, and medium enterprises;
(b) whether there is any proposal to have more FTAs with other countries and negotiations
underway, if so, the details thereof; and
(c) whether Government will protect the interests of the farmers by not proceeding with
FTAs if so, the details thereof?
ANSWER
THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE
कृ िष एवं िकसान क(cid:670)ाण रा(cid:475) मं(cid:361)ी (SHRI RAMNATH THAKUR)
(a) to (c): India is actively pursuing trade negotiations with several countries and regional
blocs to expand its global trade footprint and enhance competitiveness of Indian exports.
At present, Negotiations are ongoing on the India–European Union Free Trade Agreement,
India–Australia Comprehensive Economic Cooperation Agreement, India–Sri Lanka
Economic and Technology Cooperation Agreement, India–Peru Free Trade Agreement,
India-Chile Comprehensive Economic Partnership Agreement, India–New Zealand Free
Trade Agreement, India–USA Bilateral Trade Agreement and a similar approach has been
followed while dealing with the UK to safeguard the interests of farmers and secure market
access for our agri-products.
In order to protect the interests of the farmers and domestic industry, including
MSMEs, 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. Likewise Rules of Origin, including product-
specific rules are developed with stakeholder consultations. 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.
*****