Free trade pacts do not distort business: Govt

The Union commerce ministry on Monday tossed the idea free trade agreements distort business.

"The imports have not increased to a level that will create concerns and we have not become suppliers of raw materials," said a ministry study on the impact of FTAs.

Imports of intermediate goods have increased. This means India is becoming part of the value chain of South Asia, officials said.

"The (low) use of these agreements by our exporters is perhaps a concern. But we are making efforts to spread information," the officials said.

India has entered FTAs with Japan, South Korea, Malaysia and the Association of Southeast Asian Nations, among others.

Businessmen and exporters have raised concerns about the pacts saying these mostly benefit partner countries more.