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India's FTA Strategy

History and Context

India's engagement with trade agreements has been uneven. After signing multiple FTAs between 2000–2011 (South Korea CEPA 2009, ASEAN FTA 2009, Japan CEPA 2011), India withdrew from RCEP negotiations in November 2019 citing concerns about trade deficits and dumping risks from China. Since 2022, India has revived its FTA strategy under a more selective, export-focused approach.

Key details
  • India-ASEAN FTA in Goods: signed 2009, effective 2010; India has seen a persistent trade deficit with ASEAN since implementation (~USD 43 billion in FY 2022-23); under review
  • India exited RCEP: November 4, 2019 (RCEP = Regional Comprehensive Economic Partnership; 15-country mega-agreement including China, ASEAN, Japan, Korea, Australia, New Zealand)
  • India's stated concerns: India's exports did not benefit proportionately from FTAs due to non-tariff barriers; imported finished goods (from China via ASEAN) adversely affected domestic manufacturing
  • 2022 FTA revival: Driven by post-COVID supply chain restructuring, Atmanirbhar Bharat goals, and desire to capture China+1 manufacturing shift
  • FTA outcomes tracked by DPIIT's "FTA utilisation rate" — export community's actual use of preferential tariffs
In the news

Tracked since February 24, 2026 · last seen June 27, 2026 · updates as the daily brief publishes

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