Trade Agreements: India and Other Countries

1. Signed and Operational Trade Agreements

India has signed and implemented 13 FTAs and 6 PTAs with various countries and regions, providing preferential market access with over 50 nations. Key examples include:

• India-ASEAN FTA (2010):
  • Partners: 10 Southeast Asian countries (e.g., Indonesia, Malaysia, Singapore, Thailand).
  • Focus: Trade in goods, services, and investment. Reduces tariffs on 80% of traded goods.
  • Impact: Trade with ASEAN reached $110 billion in 2022-23, though India often runs a trade deficit.
• India-Japan CEPA (2011):
  • Focus: Comprehensive agreement covering goods, services, and investment.
  • Impact: Japan eliminated tariffs on 90% of Indian exports (e.g., textiles, seafood); India benefits from Japanese tech imports.
• India-South Korea CEPA (2010):
  • Focus: Goods, services, and investment; tariff cuts on 93% of Korean exports to India.
  • Impact: Bilateral trade hit $27 billion in 2022, with India exporting pharmaceuticals and importing electronics.
• India-Sri Lanka FTA (2000):
  • Focus: Duty-free access for 4,000+ product lines.
  • Impact: Trade grew from $658 million in 2000 to $5.2 billion in 2022, with Sri Lanka as a key SAARC partner.
• India-UAE CEPA (2022):
  • Focus: Immediate zero-duty access for Indian labor-intensive exports (e.g., textiles, gems).
  • Impact: Bilateral trade projected to reach $100 billion by 2027; includes a unique pharmaceuticals annex.
• India-Australia ECTA (2022):
  • Focus: 96.4% of Indian exports (by value) get zero-duty access.
  • Impact: Trade increased to $26 billion in 2023; supports labor-intensive sectors like textiles.
• India-EFTA TEPA (2024):
  • Partners: Iceland, Liechtenstein, Norway, Switzerland.
  • Focus: $100 billion investment commitment over 15 years; tariff reductions on goods.
  • Impact: Could create 1 million jobs in India; signed March 10, 2024.
• SAFTA (South Asian Free Trade Area) (2006):
  • Partners: SAARC countries (e.g., Bangladesh, Pakistan, Nepal).
  • Focus: Zero customs duties on goods by 2016.
  • Impact: Limited success due to political tensions, especially with Pakistan.
• APTA (Asia-Pacific Trade Agreement) (1975, updated):
  • Partners: Bangladesh, China, South Korea, India, Laos, Sri Lanka.
  • Focus: Preferential tariffs among developing Asia-Pacific nations.
  • Impact: Modest trade boost; China dominates the bloc.
• India-Mauritius CECPA (2021):
  • Focus: Goods, services, and trade facilitation.
  • Impact: Strengthens economic ties with Africa via Mauritius as a gateway.
• India-Mercosur PTA (2009):
  • Partners: Brazil, Argentina, Uruguay, Paraguay.
  • Focus: Preferential tariffs on limited goods (450 tariff lines).
  • Impact: Trade remains small but growing in agriculture and chemicals.
• India-Chile PTA (2007, expanded 2017):
  • Focus: Tariff concessions on 1,800+ products.
  • Impact: Trade doubled to $2.5 billion by 2022, focusing on copper imports and fruit exports.
• India-Afghanistan PTA (2003):
  • Focus: Duty reductions on select goods.
  • Impact: Limited due to Afghanistan’s instability; India exports pharmaceuticals.