Free Trade Agreements (FTAs) and India's Trade Architecture
A Free Trade Agreement (FTA) is a treaty between two or more countries to reduce or eliminate tariffs, quotas, and other trade barriers on goods and services exchanged between them. India distinguishes between FTAs (limited to goods), Comprehensive Economic Partnership Agreements (CEPAs — covering goods, services, and investment), and Comprehensive Economic Cooperation Agreements (CECAs — the broadest framework).
- India's first major FTA was with Sri Lanka (1998); subsequent agreements include ASEAN (2010), South Korea CEPA (2010), Japan CEPA (2011), UAE CEPA (2022), Australia ECTA (2022, later upgraded), and the Mauritius CECPA.
- The India-Canada CEPA, once concluded, would be India's first FTA with a G7 country in the Americas.
- FTA negotiations are conducted by the Department of Commerce (under the Ministry of Commerce and Industry), in consultation with industry bodies and other ministries.
- UPSC GS Paper 3 tests the economic impact of FTAs: trade creation (new trade generated) vs. trade diversion (trade shifting from efficient non-member producers to less-efficient member producers).
- India has been cautious about FTAs — notably staying out of RCEP (Regional Comprehensive Economic Partnership) in 2019 — citing concerns about trade deficits, particularly with China.
● Tracked since May 04, 2026 · last seen July 04, 2026 · updates as the daily brief publishes
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