How has India’s approach to FTAs evolved over the years?

After years of slow-moving negotiations, India’s trade policy has shifted gears. Over the past three and a half years, the country has signed a string of Free Trade Agreements (FTAs) to increase market access for Indian goods and services. The latest, with New Zealand, may appear modest in isolation, but it is significant when looking at what has been happening over the last five to six years.  While it is true that New Zealand accounts for less than 1% of India’s total trade, this FTA comes on the back of a series of successful trade deals with several countries. India has signed, or closed trade negotiations, seven other trade agreements in the past three and a half years or so. These include agreements with Mauritius, the UAE, Australia, the EFTA nations, the U.K., the EU, Oman. New Delhi has also sealed a trade deal with the U.S.  Taken together, these agreements suggest a shift from earlier FTAs, especially after the disruptions caused by the COVID-19 pandemic and wider geopolitical tensions. Older deals, such as those with South Korea or ASEAN economies, tended to involve broader tariff cuts across sectors, with the expectation that greater openness would increase trade. The newer agreements are more focused on sectors where India is competitive, along with revised tariff structures and stricter rules of origin. They also place greater emphasis on services, professional mobility, investment, and supply-chain diversification.  Guest: Arpita Mukherjee, Professor, ICRIER Host: Nivedita Varadarajan Producer: Shiksha Jural Learn more about your ad choices. Visit megaphone.fm/adchoices