Parliament Question: Review of Free Trade Agreements

GOVERNMENT OF INDIA MINISTRY OF COMMERCE AND INDUSTRY DEPARTMENT OF COMMERCE RAJYA SABHA UNSTARRED QUESTION NO. 3236 ANSWERED ON 20/03/2026 REVIEW OF FREE TRADE AGREEMENTS

3236. DR. JOHN BRITTAS

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

(a) total number and details of Free Trade Agreements (FTAs) that India has signed in the last five years;

(b) the details of the agreements which were already in force;

(c) annual trade surplus or trade deficit between India and its FTA partners during last five years; year-wise and FTA-wise details thereof;

(d) details of trade agreements currently under negotiation, including their present status; and

(e) whether any existing agreements have been identified for review, if so, the reasons and the proposed process of review? ANSWER THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI JITIN PRASADA)

(a) and (b) India has signed 16 Free Trade Agreements (FTAs) with its trade partners, 06 of which are signed in last five years with trade partners, namely, Mauritius, United Arab Emirates

(UAE), Australia, European Free Trade Association (EFTA), the United Kingdom (UK) and Oman. 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 (USA) have announced on February 7, 2026 that the United States of America (United States) and India have reached a framework for an Interim Agreement regarding reciprocal and mutually beneficial trade. A list of India’s FTAs is placed at Annexure-I. 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 major FTAs are listed below: • India-EU 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 1rubber, 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 labour-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.

• 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.

• The India-Korea CEPA (IKCEPA): Korea had extended zero duty concessions to India on 60.6% of Tariff Lines at the implementation stage, whereas India had granted zero duty concession on only 3.9% of TLs at the implementation stage. India’s concessions were mostly in E-8 category i.e. reduction to zero duty over 8-year period. Korea and India have liberalized 93.2% and 83.8% of Tariff Lines (TLs), respectively under IKCEPA.

• India-Japan CEPA: Japan has given most concessions (79.44% of Tariff Lines), at the implementation stage whereas India has given most concessions (63.5% of TLs) at B- 10 stage, i.e., tariff reductions spread over 10 years. Japan and India have liberalized

88.7 % and 86.4% of Tariff Lines (TLs), respectively under IJCEPA. • India-ASEAN Agreements: (i) India-Thailand Early Harvest Scheme (ii) India- Singapore Comprehensive Economic Cooperation Agreement (CECA) (iii) India- Malaysia Comprehensive Economic Cooperation Agreement (CECA) (iv) ASEAN- India Trade in Goods Agreement (AITIGA) and (v) ASEAN-India Trade in Services 2Agreement. The ASEAN-India Trade in Goods Agreement (AITIGA) was signed on 13th August 2009 and came into force on 1st January 2010 in respect of India, Malaysia, Singapore and Thailand. By 1st August 2011, all ASEAN members became signatory to the FTA.

• India-Mauritius CECPA: India will receive preferential access for 310 export items (78% of total lines) to Mauritius, while Mauritius will be benefited from preferential market access into India for 615 products (90% of total trade lines). Indian service providers have been granted market access in around 115 sub-sectors across 11 broad service sectors in Mauritius. India, in turn, has offered market access in around 95 sub- sectors covering 11 broad service sectors to Mauritius

(c) and (d) Year-wise and FTA-wise India’s trade balance with its FTA partners for last five years is placed at Annexure-II including further details.

(e) and (f) The details and present status of India’s trade agreements under negotiations are

mentioned below: i. India – Australia Comprehensive Economic Cooperation Agreement (CECA): 11 rounds of negotiations have been held so far. ii. India – Sri Lanka Economic and Technology Cooperation Agreement (ETCA): 14 rounds of negotiations have been held.

iii. India – Peru FTA: Negotiations commenced in 2017. Till date, 9 rounds have been held. iv. India-Chile CEPA: Negotiations were launched on 01st April 2025. 4 rounds of negotiations have been held. v. India – Eurasian Economic Union (EAEU) FTA: 01st round of negotiations was held in November, 2025.

vi. India – Israel FTA: First round of negotiations held on 23-26 February, 2026. vii. India – Philippines PTA: ToRs signed for PTA negotiations. viii. India – Maldives FTA: ToRs signed for FTA negotiations.

ix. India – Gulf Cooperation Council (GCC) FTA: ToRs signed for FTA negotiations. x. India – Canada CEPA: ToRs signed for CEPA negotiations. xi. ASEAN – India Trade in Goods Agreement (AITIGA): Review ongoing through AITIGA Joint Committee. 11 rounds held so far.

xii. India – Korea CEPA - Review for upgradation of India-Korea CEPA ongoing with 11 rounds held so far.

The Government regularly reviews existing Free Trade Agreements (FTAs) to ensure they continue to serve India’s economic and strategic interests. These reviews address multiple aspects, including stakeholder and industry demands for improved market access for Indian goods and services, removal of non-tariff barriers, simplification of rules of origin and customs procedures, and modernization of agreements by incorporating new areas such as digital trade, investment, and supply chains.

The review process involves extensive consultations with stakeholders, industry associations, relevant Ministries and Departments, and partner countries, followed by negotiations for amendments or upgrades wherever required. FTAs are reviewed to safeguard India’s trade and economic interests and to keep them aligned with national priorities.

***** 3Annexure-I Annexure referred to in reply to Part (a) and (b) of Rajya Sabha Unstarred Question No. 3236 for answer on 20.03.2026 India’s Free Trade Agreements Sl. Name of the Agreement Date of Date of Implementation of the No. Signing of the Agreement Agreement 1 India - Sri Lanka FTA 28th December, 1st March, 2000 1998 2 Agreement on SAFTA 4th January, 2004 1st January, 2006 (India, Pakistan, Nepal, Sri (Tariff concessions implemented from 1st Lanka, Bangladesh, July, 2006) Bhutan, Maldives and Afghanistan) 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 Agreement 17th January, Renewed periodically, with mutually on Trade Commerce and 1972 agreed modifications. Agreement dated Transit 29th July 2006 was valid for 10 years.

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 CECA 29th June, 2005 1st August, 2005 7 India - ASEAN- CECA - 13th August, Goods Trade in Goods, Services 2009 for goods and Investment Agreement and November • 1st January 2010 in respect of (Brunei, Cambodia, 2014 for Services India and Malaysia, Singapore, Indonesia, Laos, Malaysia, and Investment Thailand.

Myanmar, Philippines, • 1st June 2010 in respect of India Singapore, Thailand and and Vietnam.

Vietnam) • 1st September 2010 in respect of India and Myanmar. • 1st October 2010 in respect of India and Indonesia.

4• 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 CEPA 7th August, 2009 1st January, 2010 9 India - Japan CEPA 16th February, 1st August, 2011 2011 10 India - Malaysia CECA 18th February, 1st July, 2011 2011 11 India - Mauritius 22nd February, 1st April, 2021 Comprehensive Economic 2021 Cooperation and Partnership Agreement

(CECPA) 12 India-UAE CEPA 18th February, 1st May 2022 2022 13 India-Australia Economic 2nd April, 2022 29th December 2022.

Cooperation and Trade Agreement (Ind-Aus ECTA) 14 India-European Free Trade 10th March 2024 01st October 2025 Association (EFTA) Trade and Economic Partnership Agreement (TEPA) 15 India - UK Comprehensive 24th July 2025 Under ratification process Economic and Trade Agreement (CETA) 16 India – Oman 18th December Under ratification process Comprehensive Economic 2025 Partnership Agreement

(CEPA) 5Annexure-II Annexure referred to in reply to Part (c) and (d) of Rajya Sabha Unstarred Question No. 3236 for answer on 20.03.2026 FTA-wise India’s Trade Balance with FTA partners for last five years S. Trade Balance (in USD Million) Partner No. Name of the FTA Country 2020-21 2021-22 2022-23 2023-24 2024-25 1 India – Sri Lanka Sri Lanka 2855.28 4792.21 4033.45 2692.66 3247.81 FTA 2 Agreement on Sri Lanka 2855.28 4792.21 4033.45 2692.66 3247.81 SAFTA Afghanistan 316.29 43.54 -15.76 -286.84 -370.90 Bangladesh 8599.90 14178.44 10194.61 9221.11 9480.22 Bhu tan 268.02 340.77 543.48 624.62 622.11 Maldives 171.39 601.47 -19.87 805.25 442.06 Nepal 6165.30 8274.70 7237.74 6209.87 6097.15 Pakistan 324.48 511.29 606.99 1185.97 557.33 SAFTA Total 18700.66 28742.42 22580.64 20452.64 20075.78 3 India Nepal Treaty Nepal 6165.30 8274.70 7237.74 6209.87 6097.15 of Trade 4 India - Bhutan Agreement on Bhu tan 268.02 340.77 543.48 624.62 622.11 Trade Commerce and Transit 5 India - Thailand FTA - Early Thailand -1444.68 -3581.29 -5483.55 -4870.27 -9454.50 Harvest Scheme

(EHS) 6 India - Singapore Singapore -4629.42 -7811.58 -11602.41 -6784.98 -8305.98 CECA 7 India - ASEAN- Brunei -266.35 -351.28 -234.51 -151.32 -70.12 CECA - Trade in Cambodia 129.51 103.49 74.41 -33.01 103.50 Goods, Services and Investment Indonesia -7443.95 -9231.31 -18796.11 -17421.73 -17397.85 Agreement Laos 25.64 13.85 -57.31 -86.85 0.89 Malaysia -2315.38 -5429.16 -5578.78 -5491.86 -5221.83 Myanmar 245.77 -108.84 -147.74 -405.28 -919.65 Philippines 884.82 1378.12 1134.56 663.57 984.03 Singapore -4629.42 -7811.58 -11602.41 -6784.98 -8305.98 Thailand -1444.68 -3581.29 -5483.55 -4870.27 -9454.50 6Vietnam -1121.02 -735.85 -2885.57 -3874.91 -4905.03 AITIGA Total -15935.1 -25753.9 -43577 -38456.6 -45186.5 8 India – Japan Japan -6490.15 -8222.99 -11033.99 -12539.24 -12666.02 CEPA 9 India - South Korea South Korea -8088.35 -9392.17 -14573.21 -14718.72 -15244.57 CEPA 10 India - Malaysia Malaysia -2315.38 -5429.16 -5578.78 -5491.86 -5221.83 CECA

Source: DGCIS India - Mauritius Comprehensive Economic Cooperation and Partnership Agreement

(CECPA) Value in Rs. Crore 2020-21 2021-22 2022-23 2023-24 2024-25 Apr – Dec 2025 Export 3125 5326 3720 6454 5699 3490 Import 315 536 736 605 1788 766 Total Trade 3440 5862 4325 7059 7487 4256 Trade Balance 2810 4790 2984 5849 3911 2724

Source: DGCIS Bilateral Trade between India and EFTA Value in INR Crore India’s Export to EFTA 2025-26 2025-26 2024-25 (Apr -Dec) (Oct-Dec) A Gems & Jewellery 4020.41 2323.28 226.14 B Petroleum 638.93 438.25 0.01 C Non-G&J and Petroleum 11965.28 8869.75 2956.4

16624.62 11631.28 3182.55 Total Export(A+B+C) India’s Import from EFTA A Gems & Jewellery 154731.29 124005.53 49098.38 B Petroleum 5033.87 3030.12 674.41 C Non- G&J and Petroleum 29099.15 24723.4 9286.55 Total Import(A+B+C) 188864.31 151759.05 59059.34

205488.93 163390.33 62241.89 Total Trade 7- - -48872.24 Trade Balance (Gems and Jewellery) 150710.88 121682.25 -4394.94 -2591.87 -674.4 Trade Balance (Petroleum) Trade Balance (Non-G&J and -17133.87 -15853.65 -6330.15 Petroleum) - - -55876.79 Trade Balance 172239.69 140127.77

Source: DGCIS India-Australia Economic Cooperation and Trade Agreement (ECTA) Value in Rs. Crore India’s Export to Australia 2021- 2022- 2023- 2024- 2022 2023 2024 25 A Gems and Jewellery Products 2553 2753 2483 2728 B Petroleum Products 34127 23334 31433 37910 C Non-petroleum and Gems & Jewellery Products 25160 29468 31752 31974 Total Export (A+B+C) 61840 55555 65668 72612 India’s Import from Australia A Gems and Jewellery Products 6936 8429 16666 31073 B Petroleum Products 48 2 12 25 C Non-petroleum and Gems & Jewellery Products 118044 143571 117104 100134 Total Import (A+B+C) 125028 152002 133782 131232 Total Trade 186868 207557 199450 203844 Trade Balance (Gems and Jewellery Products) -4383 -5676 -14183 -28345 Trade Balance (Petroleum Products) 34079 23332 31421 37885 Trade Balance (Non-petroleum and Gems & -92884 -114103 -85352 -68160 Jewellery Products) Trade Balance -63188 -96447 -68114 -58620

Source: DGCIS 8India - United Arab Emirates (UAE) Comprehensive Economic Partnership Agreement

(CEPA) Value in Rs. Crore India’s Export to UAE 2022- 2023- 2024- Apr-Dec 2023 2024 2025 2025 A Gems and Jewellery Products 36964 46480 66673 65771 B Petroleum Products 46263 69472 68194 64128 Non-petroleum and Gems & Jewellery C 125931 137901 160227 180152 Products Total Export (A+B+C) 209158 253852 295094 310050 India’s Import from UAE A Gems and Jewellery Products 118747 118946 166630 229453 B Petroleum Products 151618 221928 146039 209214 Non-petroleum and Gems & Jewellery C 64105 86532 85157 98172 Products Total Import (A+B+C) 334470 427406 397826 536838 Total Trade 543628 681258 692921 846888 Trade Balance (Gems and Jewellery Products) -81783 -72466 -99957 -163682 Trade Balance (Petroleum Products) -105355 -152456 -77845 -145086 Trade Balance (Non-petroleum and Gems & 61826 51369 75070 81980 Jewellery Products) Trade Balance -125312 -173553 -102732 -226788

Source: DGCIS

Note: Detailed commodity wise trade data may be sourced at the following link:

https://tradestat.commerce.gov.in/eidb/commodity_wise_export

https://tradestat.commerce.gov.in/eidb/commodity_wise_import ***** 9