Free Trade Agreements

Utilisation of FTA benefits low in India; compliance cost is a hurdle: GTRI

India's utilisation of free trade agreement benefits remains low at just 20-30 per cent of eligible exports, compared with 60-70 per cent by the FTA partners, due to high compliance costs and already low tariffs in partner countries, think tank GTRI said on Tuesday. It also said that Free Trade Agreements (FTAs) have made the inverted duty structure issue harder to fix because many finished goods now enter India at low or zero duty from partners such as ASEAN, Japan, South Korea, the UAE and Australia. As a result, Indian manufacturers often pay high duties on imported inputs, especially those sourced from non-FTA countries, while competing against finished products imported duty-free under FTAs, the Global Trade Research Initiative (GTRI) said. Citing an example, it said steel and aluminium attract MFN (duty applicable for all countries) duties of 7.5-10 per cent, but machinery, industrial equipment and engineering products made from these materials can enter India duty-free under

We may roll out 9 free trade agreements in next 10 months: Piyush Goyal

Commerce Minister Piyush Goyal said nine recently signed free trade agreements are expected to become operational within 10 months, with several more trade pacts in the pipeline

India should audit existing FTAs to assess effectiveness: Report

After the trade deal, India's exports to the UAE have risen by $13 billion over the past four years, while imports have increased by $24 billion

India should reassess FTAs, modernise investment screening: Report

India should reassess the effectiveness of its existing Free Trade Agreements (FTAs), modernise its investment screening architecture, and adopt a more coordinated trade and industrial policy framework as geopolitical fragmentation reshapes global commerce, a report said on Thursday. The report said that India's economic strategy must move beyond reactive policymaking and focus on proactive integration through calibrated partnerships, stronger institutional coordination and clearer market access objectives. Among its key recommendations, the report calls on India to audit existing FTAs, assess whether they have met intended objectives, and align future trade agreements more closely with industrial and export priorities. It also recommended that India explore high-quality market arrangements and utilise multilateral institutions and bilateral investment treaties to secure greater predictability for businesses and investors. The report titled 'Resilience in a Fragmenting World: India

Titan gears up to take on global watch giants in premium, luxury segment

But Markose is also revving up in the premium and luxury segment now

UK won't undermine India FTA benefits; steel imports below quota: Leong

House of Lords member Sonny Leong says the UK remains committed to the India FTA and that steel imports are currently well below proposed quota thresholds

India-Oman free trade pact comes into force; exporters set to gain

The free trade agreement between India and Oman came into force on Monday, Commerce and Industry Minister Piyush Goyal said. The India-Oman Comprehensive Economic Partnership Agreement (CEPA) will benefit domestic exporters in sectors such as textiles, leather, plastics, marine products, automobiles, sports goods, and agri-items, as they gain preferential access to the Omani market over competitors, Goyal said. "The India-Oman Comprehensive Economic Partnership Agreement is entering into force from today," the minister told reporters here. The free trade pact was signed on 18th December 2025 in Muscat. Upon completion of internal processes by both parties, the Agreement entered into force on 1st June, 2026. To mark the entry into force, about 10 consignments of agriculture and gems and jewellery products from Mumbai, Kolkata and Chennai were shipped to the Gulf nation under the preferential tariffs. Oman is India's second-largest trading partner in the Gulf region and serves as a

India needs to design policies that will raise FTA utilisation rates

High tariffs and complex compliance requirements continue to deter free-trade agreement utilisation

'India should focus on FTA implementation, utilisation by exporters'

India's next priority on the free trade agreement (FTA) front should be practical implementation and helping exporters use these pacts, as the gap between the negotiated and used market access remains the country's weakest link, experts say. They said that historically, India's FTA utilisation has hovered around 25 per cent, compared with 70-80 per cent in developed economies, and closing this gap is now the single highest-leverage trade policy reform available. The immediate priority should be to ensure that these negotiated benefits translate into actual claims at the border, they added. "Hence, India's next FTA priority should be practical implementation, helping exporters use the agreements, defend against new trade barriers, and convert market access into sustained export growth," Gulzar Didwania, Partner, Deloitte India, said. India has so far implemented several trade pacts, including those with Singapore, Japan, Korea, the UAE, Australia, ASEAN, and the EFTA bloc. It has a

Goyal to visit Canada next week to boost FTA talks, attract investments

Commerce and Industry Minister Piyush Goyal on Saturday said he will lead a business delegation of over 150 members to Canada on May 25-27 to seek investments, enhance collaborations and give impetus to talks for the proposed free trade agreement (FTA). He said that a series of meetings is in the pipeline with leaders and businesses in Ottawa and Toronto. The minister will call on Canadian Prime Minister Mark Carney and hold a bilateral meeting with his Canadian counterpart Maninder Sidhu. Goyal said that he will also meet representatives of "Maple 8" pension funds of Canada. The "Maple 8" refers to Canada's eight largest public pension funds, which together manage assets worth about 2.4 trillion Canadian dollars and are considered among the world's most influential long-term investors. The group includes major funds like the Canada Pension Plan Investment Board, Ontario Teachers' Pension Plan, and Ontario Municipal Employees Retirement System. These funds invest extensively acros

India seeks advantage over rivals as US trade pact nears finalisation

Goyal said Monday that while the first phase of the deal has been finalized, efforts are underway to ensure India gets preferential access to the US market compared with competitors

FTAs must drive exports, not just imports: Commerce Minister Piyush Goyal

Commerce Minister Piyush Goyal urged Indian industry to use upcoming FTAs to boost exports and avoid a surge in imports

FTAs, lower import duties to boost India's FDI flows: ADB chief economist

Free Trade Agreements (FTAs), reduction in import tariffs and improvement in business environment would encourage higher net foreign capital inflows into India, which have moderated in recent years, ADB Chief Economist Albert Park has said. During 2021-22, India attracted net Foreign Direct Investment (FDI) of USD 38.6 billion, which came down to USD 28 billion in FY23 and further fell to USD 10.2 billion in FY24. Net FDI -- inflow minus outflow -- came down significantly to single digit to USD 1 billion in FY25 but improved to USD 3 billion during the April-December period of FY26. The government should continue reducing import tariffs to ensure foreign investments remain competitive, he told PTI in an interview. It also needs to strengthen the overall manufacturing ecosystem by developing industrial zones with robust infrastructure and integrated facilities, making them easier for foreign firms to address their business needs efficiently in one place, he said, adding that free tr

Industry must better leverage FTAs for trade growth: Commerce Secy

The Indian industry needs to leverage and utilise the free trade agreements (FTAs) that India is finalising, as they provide huge opportunities for both trade and investments, Commerce Secretary Rajesh Agrawal said on Monday. The secretary said that the track record of the country fully utilising and leveraging FTAs is "not great". He also said that the country's industrial policy should complement its trade policy, as trade is also a function of how India invests and produces. "...FTA utilization is something we are questioned again and again. What is the benefit that FTAs are actually leading to?," he said here while addressing a session on free trade agreements. India has implemented trade pacts with a number of countries and groupings including Singapore, Japan, Korea and Asean. Agrawal said these pacts have led to increase in bilateral trade, but India's exports have grown at a slower pace than imports. Talking about the trade pacts with Mauritius, the UAE, Australia, the EU

India, Canada begin second round of CEPA trade talks to boost ties

India and Canada on Monday started second round of negotiations for a free trade agreement aimed at boosting two-way commerce and investments, an official said. The pact is officially known as the Comprehensive Economic Partnership Agreement (CEPA) and negotiations will cover trade in goods, services, and other mutually agreed policy areas. "The five-day talks started on May 4 here," the official said. The first round was held in March. This round is important as Commerce and Industry Minister Piyush Goyal will visit Canada by end of this month to give an impetus to the negotiations. The negotiations mark the resumption of talks, as the two countries had earlier engaged in a similar exercise, but Canada paused it in 2023. Now, they decided to resume talks from the beginning as a lot has changed on the global trade front during these two years. The negotiations are important as the two sides have fixed a target to increase the bilateral trade to USD 50 billion by 2030. It stood at

India, UK discuss ways to boost bilateral trade, investments under CETA

India and the UK on Friday discussed ways to boost two-way commerce and investments and leverage opportunities under the comprehensive economic and trade agreement signed in July last year. It was discussed during a virtual meeting between Commerce and Industry Minister Piyush Goyal and UK Secretary of State for Business and Trade Peter Kyle. "We explored ways to further enhance our trade and investment ties while fully leveraging the opportunities under the India-UK Comprehensive Economic and Trade Agreement (CETA)," Goyal said in a social media post. India and the UK, on July 24, 2025, signed the Comprehensive Economic and Trade Agreement (CETA), under which 99 per cent of Indian exports will enter the British market at zero duty, while tariffs on British products, such as cars and whisky, will be reduced in India. CETA aims to double the USD 56 billion trade between the two economies by 2030.

India-New Zealand trade pact cuts fruit tariffs, boosts exports and visas

The agreement, concluded in December, will see New Zealand eliminate duties on all Indian exports, while India will reduce tariffs on 95 per cent of imports from the South Pacific nation

India-New Zealand FTA to be signed today: Key gains, sectors, and impact

India and New Zealand on Monday will sign a free trade agreement (FTA) to boost two-way commerce in goods and services and promote investments. The pact will come into force on actually decided date agreed by both sides. Here are a few questions and answers to understand the main strategic gain of this deal: FTA: ----- An economic arrangement between two or more countries where they agree either to end or significantly reduce customs duties on the maximum number of goods traded between them, besides cutting down barriers which can hinder or promote two-way commerce and investments. INDIA-NEW ZEALAND FTA BRIEF: ----------------------------------- Negotiations were first launched in 2010, stalled in 2015 after nine rounds, and were revived in March 2025. March 16, 2025: Negotiations resumed afresh December 22, 2025: Announced conclusion of talks April 27, 2026: FTA set to be signed The agreement covers 20 chapters, including trade in goods, rules of origin, services, customs

New Zealand's opposition Labour Party to back free trade deal with India

New Zealand and India concluded a free trade deal in December that will eliminate or reduce tariffs on 95 per cent of New Zealand's ‌exports to India

Industry seeks duty concessions to sell goods from SEZs to domestic mkt

Industry bodies have urged the government to allow SEZ units to sell goods in the domestic market at zero or concessional duties similar to FTA imports to remove disadvantages and boost manufacturing