Lok Sabha Question No. 5294 (UNSTARRED), answered on 2023-04-05
Subject: Free Trade Agreement
Ministry: COMMERCE AND INDUSTRY
Asked by: Sudheer Gupta, Bidyut Baran Mahato, Prataprao  Jadhav, Shrirang Appa Barne, Sanjay Sadashivrao Mandlik, Sambhajirao Mane Dhairyasheel

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 5294 TO BE ANSWERED ON 05 th  APRIL, 2023

## FREE TRADE AGREEMENT

## 5294.   SHRI SUDHEER GUPTA:

SHRI BIDYUT BARAN MAHATO:

SHRI PRATAPRAO JADHAV:

SHRI SHRIRANG APPA BARNE:

SHRI SANJAY SADASHIVRAO MANDLIK:

SHRI DHAIRYASHEEL SAMBHAJIRAO MANE:

Will the Minister of COMMERCE & INDUSTRY ( वाणिज्य एवं उद्योग मं त्री ) be pleased to state:

- (a) the total number of countries with which India has signed the Free Trade Agreement so far, country-wise;
- (b) whether signing of Free Trade Agreement with some countries is in pipeline and if so, the time by which it is likely to be finalized, country-wise;
- (c) whether it is true that India's export is low in comparison to import from some of the countries with which Free Trade Agreement has been signed and if so, the details in this regard;
- (d) the  details  of  trade  deficit  with  these  countries  before  and  after  signing  the  Free  Trade Agreement, country-wise; and
- (e) the details of steps taken/being taken by the Government to boost the trade in the country?

## ANSWER

okf.kT; ,oa m|ksx ea=ky; esa jkT; ea=h ¼Jherh vuqfiz;k iVsy½

## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SMT. ANUPRIYA PATEL)

- (a) India has signed 13 Free Trade Agreements (FTAs) with its trading partners. A list of these FTAs is attached (Annexure-I) .
- (b) India is  currently  negotiating  FTAs with the United Kingdom, the European Union and Canada. However, it is difficult to predict the timeline for completion of negotiations, as agreements are entered into when negotiating countries are satisfied with the outcome.

(c)  &  (d)  Details  of  merchandise  trade  of  India  with  its  FTA  partner  countries  are  given  in Annexure-II .  The  trade  balance  of  the  country  is  dependent  on  a  host  of  factors  including respective economic growth patterns.

(e) Government has taken a number of steps to boost exports which include, amongst others, the  announcement  of  a  comprehensive  Foreign  Trade  Policy  (FTP)  on  31 st March,  2023 incorporating  various  trade  promotion  schemes;  measures  related  to  ease  of  doing  business, reduction in transaction cost and e-initiatives; export promotion initiatives including extension of FTP benefits for exports under Rupee payments; new towns of export excellence; initiatives for district  as  export  hub;  export  related  infrastructure  and  logistic  development;  FTP  benefits  for eCommerce exports; review of existing FTAs such as India-Korea CECA; negotiating new FTAs; enhancing  active  role  of  Indian  Missions  abroad  towards  promoting  India's  trade,  tourism, technology and investment goals etc,

*****

## List of Free Trade Agreements (FTAs)

|   Sl. No. | Name of the Agreement                                                                                                                                                        | Date of Signing of the Agreement                                           | Date of Implementation of the Agreement                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         1 | India - Sri Lanka FTA                                                                                                                                                        | 28 th December, 1998                                                       | 1 st March, 2000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|         2 | Agreement on SAFTA (India, Pakistan, Nepal, Sri Lanka, Bangladesh, Bhutan, the Maldives and Afghanistan)                                                                     | 4 th January, 2004                                                         | 1 st January, 2006 (Tariff concessions implemented from 1 st July, 2006)                                                                                                                                                                                                                                                                                                                                                                                                                            |
|         3 | India Nepal Treaty of Trade                                                                                                                                                  | 27 th October, 2009                                                        | The Treaty has been extended for a further period of 7 years and is currently in force till 26 th October 2023.                                                                                                                                                                                                                                                                                                                                                                                     |
|         4 | India - Bhutan Agreement on Trade, Commerce and Transit                                                                                                                      | 17 th January, 1972                                                        | Renewed periodically, with mutually agreed modifications. Agreement dated 29 th July 2006 was valid for 10 years. With mutual consent, the validity was extended for a period of one year or the period till the proposed new Agreement comes into force. The renewed Agreement has been signed on 12.11.2016 and came into force with effect from 29 July 2017, for a period of 10 years.                                                                                                          |
|         5 | India - Thailand FTA - Early Harvest Scheme (EHS)                                                                                                                            | 9 th October, 2003                                                         | 1 st September, 2004                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|         6 | India - Singapore CECA                                                                                                                                                       | 29 th June, 2005                                                           | 1 st August, 2005                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|         7 | India - ASEAN- CECA - Trade in Goods, Services and Investment Agreement (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam) | 13 th August, 2009 for goods and November 2014 for Services and Investment | Goods 1 st January 2010 in respect of India and Malaysia, Singapore, Thailand. 1 st June 2010 in respect of India and Vietnam. 1 st September 2010 in respect of India and Myanmar. 1 st October 2010 in respect of India and Indonesia. 1 st November 2010 in respect of India and Brunei. 24 th January 2011 in respect of India and Laos. 1 st June 2011 in respect of India and the Philippines. 1 st August, 2011 in respect of India and Cambodia. Services and Investment 1 st July, 2015 st |
|         8 | India - South Korea CEPA                                                                                                                                                     | 7 th August, 2009                                                          | 1 January, 2010                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|         9 | India - Japan CEPA                                                                                                                                                           | 16 th February, 2011                                                       | 1 st August, 2011                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|        10 | India - Malaysia CECA                                                                                                                                                        | 18 th February, 2011                                                       | 1 st July, 2011                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|        11 | India - Mauritius Comprehensive Economic Cooperation and Partnership Agreement (CECPA)                                                                                       | 22 nd February, 2021                                                       | 1 st April, 2021                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|        12 | India-UAE CEPA                                                                                                                                                               | 18 th February, 2022                                                       | 1 st May 2022                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|        13 | India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA)                                                                                                      | 2 nd April, 2022                                                           | 29 th December 2022.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |

## Annexure-I

## 1) India-Sri Lanka FTA

## Merchandise Trade of India with its FTA partner countries

(Source: DGCI&S)

(Values in USD Million)

| Country / Region   | Pre FTA 1998-99   | Pre FTA 1998-99   | Pre FTA 1998-99   | Post FTA 2021-22   | Post FTA 2021-22   | Post FTA 2021-22   |
|--------------------|-------------------|-------------------|-------------------|--------------------|--------------------|--------------------|
|                    | Export            | Import            | Trade Balance     | Export             | Import             | Trade Balance      |
| Sri Lanka          | 437.13            | 37.68             | 399.45            | 5,802.18           | 1,009.97           | 4,792.21           |

## 2) Agreement on SAFTA

(Values in USD Million)

| S.No.   | Country / Region   | Pre FTA   | Pre FTA   | Pre FTA       | Post FTA   | Post FTA   | Post FTA      |
|---------|--------------------|-----------|-----------|---------------|------------|------------|---------------|
|         |                    | 2005-2006 | 2005-2006 | 2005-2006     | 2021-22    | 2021-22    | 2021-22       |
|         |                    | Export    | Import    | Trade Balance | Export     | Import     | Trade Balance |
| 1       | Afghanistan        | 142.67    | 58.42     | 84.25         | 554.47     | 510.93     | 43.54         |
| 2       | Bangladesh         | 1,664.36  | 127.03    | 1537.33       | 16156.37   | 1977.93    | 14178.44      |
| 3       | Bhutan             | 99.17     | 88.77     | 10.4          | 885.81     | 545.04     | 340.77        |
| 4       | Maldives           | 67.58     | 1.98      | 65.6          | 670.4      | 68.93      | 601.47        |
| 5       | Nepal              | 859.97    | 379.85    | 480.12        | 9645.74    | 1371.04    | 8274.7        |
| 6       | Pakistan           | 689.23    | 179.56    | 509.67        | 513.82     | 2.54       | 511.28        |
| 7       | Sri Lanka          | 2,024.67  | 577.7     | 1446.97       | 5802.18    | 1009.97    | 4792.21       |
|         | Total SAFTA        | 5,547.65  | 1413.31   | 4134.34       | 34228.8    | 5486.37    | 28742.43      |

- 3) India Nepal Treaty of Trade
- 4) India-Bhutan Agreement on Trade, Commerce and Transit
- 5) India Thailand FTA - Early Harvest Scheme (EHS)
- 6) India-Singapore Comprehensive Economic Cooperation Agreement (CECA)

| Country / Region   | Pre FTA 2008-09   | Pre FTA 2008-09   | Pre FTA 2008-09   | Post FTA 2021-22   | Post FTA 2021-22   | Post FTA 2021-22   |
|--------------------|-------------------|-------------------|-------------------|--------------------|--------------------|--------------------|
|                    | Export            | Import            | Trade Balance     | Export             | Import             | Trade Balance      |
| Nepal              | 1,570.15          | 496.04            | 1,074.11          | 9,645.74           | 1,371.04           | 8,274.70           |

| Country / Region   | Pre FTA   | Pre FTA   | Pre FTA       | Post FTA   | Post FTA   | Post FTA      |
|--------------------|-----------|-----------|---------------|------------|------------|---------------|
|                    | 2005-06   | 2005-06   | 2005-06       | 2021-22    | 2021-22    | 2021-22       |
|                    | Export    | Import    | Trade Balance | Export     | Import     | Trade Balance |
| Bhutan             | 99.17     | 88.77     | 10.4          | 885.81     | 545.04     | 340.77        |

| Country / Region   | Pre FTA 2003-04   | Pre FTA 2003-04   | Pre FTA 2003-04   | Post FTA 2021-22   | Post FTA 2021-22   | Post FTA 2021-22   |
|--------------------|-------------------|-------------------|-------------------|--------------------|--------------------|--------------------|
|                    | Export            | Import            | Trade Balance     | Export             | Import             | Trade Balance      |
| Thailand           | 831.68            | 609.05            | 222.63            | 5751.3             | 9332.59            | -3581.29           |

(Values in USD Million)

(Values in USD Million)

(Values in USD Million)

(Values in USD Million)

|                  | Pre-CECA   | Pre-CECA   | Pre-CECA      | Post-CECA   | Post-CECA   | Post-CECA     |
|------------------|------------|------------|---------------|-------------|-------------|---------------|
| Country / Region | 2004-05    | 2004-05    | 2004-05       | 2021-22     | 2021-22     | 2021-22       |
|                  | Export     | Import     | Trade Balance | Export      | Import      | Trade Balance |
| Singapore        | 4000.61    | 2651.4     | 1349.21       | 11150.66    | 18962.19    | -7811.53      |

- 7) ASEAN-India Trade in Goods Agreement (AITIGA)

(Values in USD Million)

| S. No.      | Country / Region   | Pre-FTA 2008-09   | Pre-FTA 2008-09   | Pre-FTA 2008-09   | Post-FTA 2021-22   | Post-FTA 2021-22   | Post-FTA 2021-22   |
|-------------|--------------------|-------------------|-------------------|-------------------|--------------------|--------------------|--------------------|
| S. No.      | Country / Region   | Export            | Import            | Trade Balance     | Export             | Import             | Trade Balance      |
| 1           | BRUNEI             | 17.64             | 397.52            | -379.88           | 43.16              | 394.44             | -351.28            |
| 2           | CAMBODIA           | 46.9              | 2.72              | 44.18             | 198.37             | 94.88              | 103.49             |
| 3           | INDONESIA          | 2559.82           | 6666.34           | -4106.52          | 8473.49            | 17702.83           | -9229.34           |
| 4           | LAO PD RP          | 9                 | 0.53              | 8.47              | 14.65              | 0.8                | 13.85              |
| 5           | MALAYSIA           | 3419.97           | 7184.78           | -3764.81          | 6995.06            | 12424.2            | -5429.14           |
| 6           | MYANMAR            | 221.64            | 928.97            | -707.33           | 893.03             | 1001.87            | -108.84            |
| 7           | PHILIPPINES        | 743.77            | 254.77            | 489               | 2107.24            | 729.12             | 1378.12            |
| 8           | SINGAPORE          | 8444.93           | 7654.86           | 790.07            | 11150.66           | 18962.19           | -7811.53           |
| 9           | THAILAND           | 1938.31           | 2703.82           | -765.51           | 5751.3             | 9332.59            | -3581.29           |
| 10          | VIETNAM            | 1738.65           | 408.66            | 1329.99           | 6702.8             | 7438.52            | -735.72            |
| Total ASEAN | Total ASEAN        | 19140.63          | 26202.96          | -7062.33          | 42329.75           | 68081.43           | -25751.7           |

- 8) India-South Korea CEPA

(Values in USD Million)

| Country / Region   | Pre CEPA 2009-10   | Pre CEPA 2009-10   | Pre CEPA 2009-10   | Post CEPA 2021-22   | Post CEPA 2021-22   | Post CEPA 2021-22   |
|--------------------|--------------------|--------------------|--------------------|---------------------|---------------------|---------------------|
|                    | Export             | Import             | Trade Balance      | Export              | Import              | Trade Balance       |
| South Korea        | 3,421.05           | 8,576.07           | -5155.02           | 8,085.03            | 17,477.20           | -9392.17            |

## 9) India-Japan CEPA

(Values in USD Million)

| Country / Region   | Pre FTA 2010-11   | Pre FTA 2010-11   | Pre FTA 2010-11   | Post FTA 2021-22   | Post FTA 2021-22   | Post FTA 2021-22   |
|--------------------|-------------------|-------------------|-------------------|--------------------|--------------------|--------------------|
|                    | Export            | Import            | Trade Balance     | Export             | Import             | Trade Balance      |
| Japan              | 5,091.24          | 8,632.03          | -3,540.79         | 6,176.77           | 14,399.77          | -8,223.00          |

6

## 10) India-Malaysia Comprehensive Economic Cooperation Agreement (CECA)

(Values in USD Million)

| Country /   | 2010-11 (Pre-CECA)   | 2010-11 (Pre-CECA)   | 2010-11 (Pre-CECA)   | Post-CECA 2021-22   | Post-CECA 2021-22   | Post-CECA 2021-22   |
|-------------|----------------------|----------------------|----------------------|---------------------|---------------------|---------------------|
| Region      | Export               | Import               | Trade Balance        | Export              | Import              | Trade Balance       |
| Malaysia    | 3871.17              | 6523.58              | -2652.41             | 6995.06             | 12424.2             | -5429.14            |

## 11) India-Mauritius CECPA

(Values in USD Million)

|                  | Pre CECPA 2020-21   | Pre CECPA 2020-21   | Pre CECPA 2020-21   | Post CECPA 2022-23 (Apr-Jan)   | Post CECPA 2022-23 (Apr-Jan)   | Post CECPA 2022-23 (Apr-Jan)   |
|------------------|---------------------|---------------------|---------------------|--------------------------------|--------------------------------|--------------------------------|
| Country / Region | Export              | Import              | Trade Balance       | Export                         | Import                         | Trade Balance                  |
| Mauritius        | 422.91              | 42.61               | 380.30              | 392.17                         | 71.91                          | 320.26                         |

## 12) India-UAE CEPA

|                  | Pre CEPA   | Pre CEPA   | Pre CEPA      | CEPA came into effect in 2022-23. Hence post CEPA figures will be assessed in the financial year 2023-24.   |
|------------------|------------|------------|---------------|-------------------------------------------------------------------------------------------------------------|
| Country / Region | 2020-21    | 2020-21    | 2020-21       | CEPA came into effect in 2022-23. Hence post CEPA figures will be assessed in the financial year 2023-24.   |
| Country / Region | Export     | Import     | Trade Balance | CEPA came into effect in 2022-23. Hence post CEPA figures will be assessed in the financial year 2023-24.   |
| UAE              | 16,679.54  | 26,622.99  | -9,943.45     | CEPA came into effect in 2022-23. Hence post CEPA figures will be assessed in the financial year 2023-24.   |

## 13) India-Australia ECTA

(Values in USD Million)

(Values in USD Million)

|                  | Pre FTA   | Pre FTA   | Pre FTA       | FTA came into effect in 2022-23. Hence post FTA figures will be assessed in the financial year 2023-24.   |
|------------------|-----------|-----------|---------------|-----------------------------------------------------------------------------------------------------------|
| Country / Region | 2021-22   | 2021-22   | 2021-22       | FTA came into effect in 2022-23. Hence post FTA figures will be assessed in the financial year 2023-24.   |
|                  | Export    | Import    | Trade Balance | FTA came into effect in 2022-23. Hence post FTA figures will be assessed in the financial year 2023-24.   |
| Australia        | 8,283.13  | 16,756.17 | -8,473.04     | FTA came into effect in 2022-23. Hence post FTA figures will be assessed in the financial year 2023-24.   |

*****