India's Trade Policy Framework
From Protectionism to Calibrated Openness
India's trade policy has evolved from near-autarky under the import-substitution regime (1950s-1991) through the 1991 liberalization, to the current approach of calibrated openness through bilateral and multilateral trade agreements. The Department of Commerce under the Ministry of Commerce and Industry formulates India's trade policy, while the Directorate General of Foreign Trade (DGFT) implements it.
- India's Foreign Trade Policy (FTP) 2023 replaced the earlier 5-year FTP cycle with a dynamic, responsive policy framework, incorporating Advance Authorization, DFIA, EPCG, and export promotion schemes.
- India's average applied tariff: approximately 18.1% (among the highest for major economies, compared to the US at 3.4% and the EU at 5.1%).
- India's inverted duty structure (higher tariffs on raw materials/intermediates, lower on finished goods) has been a persistent issue, particularly in electronics, chemicals, and textiles.
- India exited the Regional Comprehensive Economic Partnership (RCEP) in November 2019 over concerns about Chinese goods flooding Indian markets, reflecting India's cautious approach to comprehensive FTAs.
● Tracked since February 10, 2026 · last seen June 23, 2026 · updates as the daily brief publishes
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