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International Relations GS 2 In the news 4 times

Free Trade Agreements and India's Trade Policy

India has historically been cautious about FTAs, often citing concerns about trade deficits widening after liberalisation (as happened post-ASEAN FTA in 2010). India withdrew from the Regional Comprehensive Economic Partnership (RCEP) negotiations in 2019 over fears of Chinese goods flooding the market. However, India has recently shifted its approach, signing FTAs with the UAE (CEPA, May 2022), Australia (ECTA, December 2022), and EFTA states (March 2024), signalling a more proactive trade engagement strategy.

Key details
  • India-ASEAN FTA: Signed 2010; India's trade deficit with ASEAN widened post-agreement
  • RCEP withdrawal: November 2019; India cited Chinese import concerns
  • India-UAE CEPA: Signed May 2022; India's first FTA in a decade at that time
  • India-Australia ECTA: Signed December 2022
  • India-EFTA (Switzerland, Norway, Iceland, Liechtenstein): Signed March 2024; includes $100 billion investment commitment
  • India's merchandise exports (FY2024-25): ~$437 billion
In the news

Tracked since February 07, 2026 · last seen July 04, 2026 · updates as the daily brief publishes

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