Lok Sabha Question No. 3794 (UNSTARRED), answered on 2025-08-12
Subject: India's Bilateral Trade
Ministry: COMMERCE AND INDUSTRY
Asked by: Dr. D. Purandeswari

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE AND INDUSTRY DEPARTMENT OF COMMERCE

## LOK SABHA UNSTARRED QUESTION NO. 3794 ANSWERED ON 12/08/2025

## INDIA'S BILATERAL TRADE

3794.   Dr. D. PURANDESWARI:

Will the Minister of COMMERCE AND INDUSTRY ( वाणिज्य एवं उद्योग मंत्री ) be pleased to state:

- (a) the data on India's bilateral trade volumes and export performance with countries post-implementation of FTAs since 2020, State and year-wise;
- (b) the details of the data on the tariff elimination or reduction have taken place under new-generation FTAs and their impact on the trade balance;
- (c) the details of the mechanisms in place to conduct stakeholder consultations and industry outreach before entering into new FTAs;
- (d) the  details  of  the  steps  have  been  taken  by  the  Government  to  sign  and operationalise FTAs with countries like the UAE, Australia, the UK and the EU in recent years and the results thereof; and
- (e) whether the Government has introduced a monitoring mechanism to assess sectorwise benefits, safeguard against dumping, and address domestic industry concerns arising from FTAs, if so, the details thereof?

## ANSWER

वाणिज्य एवं उद्योग मंत्रालय में राज्यमंत्री ( श्री णिणिन प्रसाद ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY

(SHRI JITIN PRASADA)

(a) to (e)     India has signed 5 Free Trade Agreements (FTAs) with its trading partners since 2020 as follows:

|   Sl. No. | Name of the Agreement                                                                        | Date of Signing of the Agreement   | Date of Implementation of the Agreement                  |
|-----------|----------------------------------------------------------------------------------------------|------------------------------------|----------------------------------------------------------|
|         1 | India - Mauritius Comprehensive Economic Cooperation and Partnership Agreement (CECPA)       | 22 nd February, 2021               | 1 st April, 2021                                         |
|         2 | India-UAE CEPA                                                                               | 18 th February, 2022               | 1 st May 2022                                            |
|         3 | India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA)                      | 2 nd April, 2022                   | 29 December 2022.                                        |
|         4 | India-European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA) | 10 March 2024                      | Will be implemented after ratification by EFTA countries |
|         5 | India-UK Comprehensive Economic and Trade Agreement (CETA)                                   | 24 July 2025                       | Will be implemented after ratification                   |

The merchandise export, import and trade balance in respect of implemented FTAs of Mauritius, the United Arab Emirates and Australia are as under:

| India's Bilateral Trade with FTA Partner countries (Value in US $ Million)   | India's Bilateral Trade with FTA Partner countries (Value in US $ Million)   | India's Bilateral Trade with FTA Partner countries (Value in US $ Million)   | India's Bilateral Trade with FTA Partner countries (Value in US $ Million)   | India's Bilateral Trade with FTA Partner countries (Value in US $ Million)   | India's Bilateral Trade with FTA Partner countries (Value in US $ Million)   | India's Bilateral Trade with FTA Partner countries (Value in US $ Million)   |
|------------------------------------------------------------------------------|------------------------------------------------------------------------------|------------------------------------------------------------------------------|------------------------------------------------------------------------------|------------------------------------------------------------------------------|------------------------------------------------------------------------------|------------------------------------------------------------------------------|
| Country/Region                                                               | Trade Flow                                                                   | 2020-21                                                                      | 2021-22                                                                      | 2022-23                                                                      | 2023-24                                                                      | 2024-25                                                                      |
| Australia                                                                    | Export                                                                       | 4044                                                                         | 8283                                                                         | 6951                                                                         | 7941                                                                         | 8579                                                                         |
|                                                                              | Import                                                                       | 8247                                                                         | 16756                                                                        | 19011                                                                        | 16159                                                                        | 15527                                                                        |
| Mauritius                                                                    | Export                                                                       | 423                                                                          | 715                                                                          | 463                                                                          | 778                                                                          | 676                                                                          |
|                                                                              | Import                                                                       | 43                                                                           | 72                                                                           | 91                                                                           | 73                                                                           | 211                                                                          |
| United Arab Emirates                                                         | Export                                                                       | 16680                                                                        | 28045                                                                        | 31609                                                                        | 35625                                                                        | 36636                                                                        |
|                                                                              | Import                                                                       | 26623                                                                        | 44833                                                                        | 53232                                                                        | 48026                                                                        | 63423                                                                        |
| Source-DGCIS                                                                 | Source-DGCIS                                                                 | Source-DGCIS                                                                 | Source-DGCIS                                                                 | Source-DGCIS                                                                 | Source-DGCIS                                                                 | Source-DGCIS                                                                 |

For India-Australia ECTA, the exports have increased by 14% and 8% in year 202324  and  2024-25  respectively.             For  India-UAE  FTA,  core  imports  in  2024-2025 included Petroleum: Crude, Petroleum Products, and other related commodities. India's exports of agricultural products and pharmaceuticals have registered growth. Additionally, the FTA has also led to a significant growth in Foreign Direct Investment.

In  FTAs,  tariff  reduction/elimination  is  implemented  as  per  the  tariff  modalities agreed between the Parties. Products are classified into specific categories, namely: Tariff Elimination  Immediate,  where  duties  are  reduced  to  zero  on  entry  into  force;  Tariff

Elimination Phased, wherein duties are eliminated over an agreed staging period (e.g., 3, 5,  7,  10  years);  Tariff  Reduction;  and  Tariff  Rate  Quotas.  The  details  are  given  in  the Annexure 1.

The  Department  of  Commerce  is  engaging  in  negotiations  and  reviews  on trade agreements on an ongoing basis. Before entering into new FTA negotiations, a Joint Study Group is set up to study the feasibility of the proposed FTAs or an independent study is conducted, including their impact on the domestic industry. The government ensures that wide stakeholder consultations are held at all stages of the negotiations. This includes the pre-negotiation phase, each round of negotiations, and the post-conclusion phase, during the implementation of the agreements. Through these sector-specific consultations, domestic  sensitivities  and  interests  of  farmers,  MSMEs,  etc,  are  carefully  considered during the negotiations.  The aim of FTAs is to generate benefits for industry, farmers, MSMEs and create job opportunities. FTAs are negotiated with the endeavour to deliver a comprehensive, balanced, broad-based and equitable agreement based on the principle of fairness and reciprocity. It also ensures a level playing field for Indian exporters vis-àvis their competitors in the trading partner countries.

In  addition  to  this  structured  approach,  post-implementation,  the Department  of Commerce is continuously engaged with all stakeholders, including industry, to advance trade through trade promotion, trade facilitation and remedial measures for elevating trade and economic growth.

To  protect  the  interests  of  the  domestic  industry,  FTAs  provide  for  maintaining sensitive, negative, or exclusion lists of items on which limited or no tariff concessions are granted. In addition,  in  case of  surge  in  imports  and  injury  to  the  domestic  industry,  a country is allowed to take recourse to trade remedial measures such as anti-dumping and safeguards on imports within the period as mutually agreed to by the parties under the FTAs. The FTAs include provisions on Technical Barriers to Trade to promote mutual understanding of each sides' standards, technical regulations, and measures to enhance transparency.  Additionally,  FTAs  address  non-technical  barriers,  thereby  facilitating smoother and more effective access to export markets for Indian goods. FTAs include subcommittees for review to align with emerging global requirements.

******

## Annexure 1

Referred to  in  Part  (a)  to  (e)  in  Lok  Sabha  Unstarred  Question  No.  3794  for  reply  on 12.8.2025  raised  by  Dr.  D.  PURANDESWARI,  Hon'ble  Member  of  Parliament  on  the subject India's Bilateral Trade

Tariff elimination or reduction under India-Australia ECTA

|                       | India                          | India           | Australia                      | Australia       |
|-----------------------|--------------------------------|-----------------|--------------------------------|-----------------|
| Tariff modality       | No of lines (HS 8-digit level) | %of total lines | No of lines (HS 8-digit level) | %of total lines |
| TEI                   | 4760                           | 40.0%           | 6367                           | 98.3%           |
| TEP (in 5/7/10 years) | 3601                           | 30.2%           | 113                            | 1.7%            |
| TR/TRQ                | 7                              | 0.1%            | -                              | -               |
| Exclusion             | 3540                           | 29.7%           | -                              | -               |
| Total lines           | 11908                          | 100.0%          | 6480                           | 100%            |

Tariff elimination or reduction under India-UAE CEPA

|                       | India                          | India           | UAE                            | UAE             |
|-----------------------|--------------------------------|-----------------|--------------------------------|-----------------|
| Tariff modality       | No of lines (HS 8-digit level) | %of total lines | No of lines (HS 8-digit level) | %of total lines |
| TEI                   | 7694                           | 64.61%          | 6090                           | 80.33%          |
| TEP (in 5/7/10 years) | 2401                           | 20.16%          | 1269                           | 16.74%          |
| TR/TRQ                | 656                            | 5.51            | 35                             | 0.46%           |
| Exclusion             | 1157                           | 9.72            | 187                            | 2.47%           |
| Total lines           | 11908                          | 100%            | 7581                           | 100%            |

Tariff elimination or reduction under India- Mauritius CECPA

|                       | India                          | India           | Mauritius                      | Mauritius       |
|-----------------------|--------------------------------|-----------------|--------------------------------|-----------------|
| Tariff modality       | No of lines (HS 8-digit level) | %of total lines | No of lines (HS 8-digit level) | %of total lines |
| TEI                   | 38                             | 5.56%           | 116                            | 29.44%          |
| TEP (in 5/7/10 years) | 338                            | 49.49%          | 89                             | 22.59%          |
| TR/TRQ                | 112                            | 16.40%          | 79                             | 20.05%          |
| Total Reduction       | 117                            | 17.13%          | 16                             | 4.06%           |
| Total MOP             | 10                             | 1.46%           | 10                             | 11.90%          |
| Exclusion             | 68                             | 9.96%           | 84                             | 21.32%          |
| Total lines           | 683                            | 100.00%         | 394                            | 100.00%         |

## Description of Tariff Modalities:

TEI: Tariff Elimination Immediate TEP: Tariff Elimination Phased TR: Tariff Reduction TRQ: Tariff Rate Quota

MoP: Margin of Preference