Understanding Free Trade Agreements (FTAs)

Free Trade Agreements (FTAs) are pivotal in shaping international trade policies, enabling countries to diminish trade barriers and expand market access for goods and services. For India, these agreements are instrumental in enhancing exports, attracting investments, and forging strategic economic partnerships.

India's Strategic Approach to FTAs

India has actively engaged in signing 16 FTAs, including significant agreements with Japan, South Korea, and the ASEAN. Recent agreements with the UAE, Australia, and the UK mark a shift towards a more open trade policy, aiming to integrate into global value chains and leverage export competitiveness.

The Benefits of FTAs for India

FTAs offer Indian exporters preferential access to international markets, particularly benefiting sectors like textiles, agriculture, and engineering. They also facilitate affordable imports for consumers and industries, while protecting sensitive sectors from abrupt global competition.

Landmark India-UK Free Trade Agreement

The recent Comprehensive Economic and Trade Agreement (CETA) with the UK is a milestone, targeting to double bilateral trade by 2030. It provides duty-free access for Indian agricultural products, textiles, and pharmaceuticals, among others, without compromising on sensitive items.

FTAs are a cornerstone of India's strategy to bolster economic resilience, with the UK agreement being a testament to its comprehensive and forward-looking trade policies.