Lok Sabha Question No. 2912 (UNSTARRED), answered on 2025-03-18
Subject: Benefits from Trade Deals
Ministry: COMMERCE AND INDUSTRY
Asked by: Dr. K Sudhakar, Shri Ravindra Shukla Alias Ravi Kishan

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

## LOK SABHA UNSTARRED QUESTION NO. 2912 ANSWERED ON 18/03/2025

## BENEFITS FROM TRADE DEALS

## 2912.  DR. K SUDHAKAR:

SHRI RAVINDRA SHUKLA ALIAS RAVI KISHAN:

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

(a) the specific benefits expected from various trade deals entered in the country in terms of economic growth, job creation, and investment opportunities;

(b) the steps taken by the Government ensure that the trade agreement does not negatively impact domestic industries, particularly MSMEs and the agricultural sector;

(c) the details of all trade deals in place and being negotiated by our country currently;

(d) the details of benefits accrued in terms of export and imports as a result of these trade deals;

(e) the  details  of  steps  taken  by  the  Government  to  reduce  trade  deficit  with  various countries, complete details thereof;

(f) whether  there  is  any  export  restrictions  in  place  with  respect  to  agriculture  Produce currently; and

(g) if  so,  the  details of steps taken by the Government to increase agricultural exports and reduce agriculture imports in the country?

## ANSWER

## वाणिज्य और उद्योग मंत्रालय में राज्य मंत्री (श्री णिणिन प्रसाद)

## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI JITIN PRASADA)

(a) Free  Trade  Agreements  (FTAs)  are  entered  into  with  the  concerned  trading  partner countries  primarily  with  the  aim  to  increase  the  bilateral  trade  through  enlarging  the  scope  of market  access  and  build  on  the  trade  complementarities  for  increasing  trade  and  investment, thereby providing enhanced export potential, creating benefits for industry as well as farmers and creating  job  opportunities.  Any  trade  deal  is  negotiated  with  the  endeavour  to  deliver  a comprehensive,  balanced,  broad-based  and  equitable  agreement  based  on  the  principle  of fairness and reciprocity and overall benefit to all the stakeholders. It also ensures a level playing field  for  Indian  exporters  vis-a-vis  their  competitors  who  may  have  preferential  access  in  our trading partner countries.

(b) In  order  to  protect  the  interests  of  the  domestic  industry,  including  small  and  medium enterprises  and  the  agriculture  sector,  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.

(c) India  has  signed 14 FTAs with its trading partners.  One of the Agreements, namely, India-European  Free  Trade  Association  (EFTA)  Trade  and  Economic  Partnership  Agreement (TEPA) will  be  implemented  after  completion  of  ratification  process  by  India  and  the  EFTA countries. Details of the signed FTAs and the ongoing FTAs are at Annexure-I.

(d) Details of comparative Exports and Imports for the years of implementation and 2023-24 is attached as Annexure-II .   Further, India has also initiated review of its existing FTAs, namely, India-South Korea CEPA, and ASEAN-India Trade in Goods Agreement (AITIGA).

(e) To enhance domestic supply, and reduce dependency on imports, Government of India has taken  several  initiatives.  Under  'Make  in  India'  initiative,  the  Government  has  launched Production Linked Incentives (PLI) Schemes in 14 critical sectors like electronics, pharmaceuticals, white goods, telecom and Networking products, etc., where there is substantial dependency  on  imports.  The  Government  has  also  introduced  stricter  quality  standards  and measures for quality controls, testing protocols, and mandatory certification to curb low quality imports. Further, Government has taken a number of steps such as Task Force under Department of Commerce to study, identify, categorize and develop tailored strategies for resolution of nontrade barriers, initiating review of existing FTAs, import monitoring.

(f)  &  (g)To  promote  the  export  of  agricultural  products,  the  Agricultural  and  Processed  Food Products Export Development Authority (APEDA) provides financial assistance to its registered exporters  for  its  Scheduled  products  through  its  Financial  Assistance  Scheme  (FAS).  APEDA facilitates  the  participation  of  its  member  exporters,  in  International  Trade  fairs.  Further,  it supports campaign in print/electronic media for promotion and branding of Indian agricultural products  in  key  international  markets  during  prominent  trade  fairs  in  collaboration  with  India Brand Equity Foundation.

As  regard  reduction  of  imports,  Government  has  launched  the  6-year  'Mission  for Aatma-norbharta  in  Pulses'  with  a  special  focus  on  Tur,  Urad  and  Masoor,  which  are  major imports.  This  envisages  development  and  commercial  availability  of  climate  resilient  seeds, increasing productivity, improving post-harvest storage and management. Government has also

launched  the  National  Mission  on  Edible  Oils  -  Oilseeds  (NMEO-Oilseeds)  focusing  on enhancing the production of key primary oilseed crops such as Rapeseed-Mustard, Groundnut, Soybean,  Sunflower,  and  Sesamum,  as  well  as  increasing  collection  and  extraction  efficiency from secondary sources like Cottonseed, Rice Bran, and Tree Borne Oils. Further, launch of PM Dhan Dhanya Krishi Yojana, which will cover 100 districts with low productivity, moderate crop intensity and below-average credit parameters for enhancing agricultural productivity, adoption of  crop diversification and sustainable agriculture practices, will also help increase agriculture production and reduce import dependence in the sector.

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## Annexure  referred  in  reply  to  Part  (c)  of  Lok  Sabha  Unstarred  Question  No.  2770  for Answer on 18.03.2025

## List of Free Trade Agreements (FTAs)

|   Sl. No. | Name of the Agreement                                                                                                                                                        |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         1 | India - Sri Lanka FTA                                                                                                                                                        |
|         2 | Agreement on SAFTA (India, Pakistan, Nepal, Sri Lanka, Bangladesh, Bhutan, the Maldives and Afghanistan)                                                                     |
|         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 CECA                                                                                                                                                       |
|         7 | India - ASEAN- CECA - Trade in Goods, Services and Investment Agreement (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam) |
|         8 | India - South Korea CEPA                                                                                                                                                     |
|         9 | India - Japan CEPA                                                                                                                                                           |
|        10 | India - Malaysia CECA                                                                                                                                                        |
|        11 | India - Mauritius Comprehensive Economic Cooperation and Partnership Agreement (CECPA)                                                                                       |
|        12 | India-UAE CEPA                                                                                                                                                               |
|        13 | India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA)                                                                                                      |
|        14 | India-European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA)                                                                                 |

## List of Preferential Trade Agreements (PTAs)

|   Sl. No. | Name of the Agreement                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         1 | Asia Pacific Trade Agreement (APTA) (Bangladesh, China, India, Republic of Korea, Lao People's Democratic Republic, Sri Lanka and Mongolia)                                                                                                                                                                                                                                                                                                                                                          |
|         2 | Global System of Trade Preferences (GSTP) (Algeria, Argentina, Bangladesh, Benin, Bolivia, Brazil, Cameroon, Chile, Cuba, Democratic People's Republic of Korea, Ecuador, Egypt, Ghana, Guinea, Guyana, India, Indonesia, Iran, Iraq, Libya, Malaysia, Mexico, Morocco, Mozambique, Myanmar, Nicaragua, Nigeria, Pakistan, Paraguay, Peru, Philippines, Republic of Korea, Singapore, Sri Lanka, Sudan, Thailand, Trinidad and Tobago, Tunisia, Tanzania, Uruguay, Venezuela, Viet Nam and Zimbabwe) |

|   3 | SAARC Preferential Trading Agreement (SAPTA) (Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka)   |
|-----|---------------------------------------------------------------------------------------------------------------------|
|   4 | India - Afghanistan PTA                                                                                             |
|   5 | India - MERCOSUR PTA (Argentina, Brazil, Paraguay and Uruguay)                                                      |
|   6 | India - Chile PTA                                                                                                   |

## Ongoing Free Trade Agreements (FTAs) of India

|   S.No. | Name of Agreement                                                     |
|---------|-----------------------------------------------------------------------|
|       1 | India - UK Free Trade Agreement                                       |
|       2 | India - Sri Lanka Free Trade Agreement                                |
|       3 | India - Peru Free Trade Agreement                                     |
|       4 | India - Oman Free Trade Agreement                                     |
|       5 | India - EU Free Trade Agreement                                       |
|       6 | India - Australia Comprehensive Economic Cooperation Agreement (CECA) |

Annexure  referred  in  reply  to  Part  (d)  of  Lok  Sabha  Unstarred  Question  No.  2770  for Answer on 18.03.2025

## MERCHANDISE TRADE OF INDIA WITH FTA PARTNER COUNTRIES (YEAR OF IMPLEMENTATION AND 2023-24)

(In USD Million)

| S. No.   | Name of the Agreement                                                                | Year of start of Implementation   | Export/Import     | Year                            | Year        |
|----------|--------------------------------------------------------------------------------------|-----------------------------------|-------------------|---------------------------------|-------------|
|          |                                                                                      |                                   |                   | Year of Start of implementation | 2023-24     |
| 1        | Agreement on South Asian Free Trade Agreement (SAFTA)                                | 2006-07                           | Export from India | 6,473.81                        | 25,623.66   |
| 1        | Agreement on South Asian Free Trade Agreement (SAFTA)                                | 2006-07                           | Import to India   | 1,507.45                        | 5,171.01    |
| 2        | India-ASEAN CECA - Trade in Goods, Services and Investment Agreement                 | 2010-11                           | Export from India | 25,627.89                       | 41,207.67   |
| 2        | India-ASEAN CECA - Trade in Goods, Services and Investment Agreement                 | 2010-11                           | Import to India   | 30,607.96                       | 79,664.31   |
| 3        | India-South Korea Comprehensive Economic Partnership Agreement (CEPA)                | 2010-11                           | Export from India | 3,727.29                        | 6,416.67    |
| 3        | India-South Korea Comprehensive Economic Partnership Agreement (CEPA)                | 2010-11                           | Import to India   | 10,475.29                       | 21,135.38   |
| 4        | India-Japan CEPA                                                                     | 2011-12                           | Export from India | 6,328.54                        | 5,156.28    |
| 4        | India-Japan CEPA                                                                     | 2011-12                           | Import to India   | 11,999.43                       | 17,695.52   |
| 5        | India-Mauritius Comprehensive Economic Cooperation and Partnership Agreement (CECPA) | 2021-22                           | Export from India | 714.85                          | 778.03      |
| 5        | India-Mauritius Comprehensive Economic Cooperation and Partnership Agreement (CECPA) | 2021-22                           | Import to India   | 71.87                           | 73.1        |
| 6        | India-UAE CEPA                                                                       | 2022-23                           | Export from India | 31,608.79                       | 35,625.02   |
| 6        | India-UAE CEPA                                                                       | 2022-23                           | Import to India   | 53,231.55                       | 48,025.58   |
| 7        | India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA)              | 2022-23                           | Export from India | 6,951.32                        | 7,940.75    |
| 7        | India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA)              | 2022-23                           | Import to India   | 19,011.31                       | 16,159.20   |
|          | TOTAL Export                                                                         | TOTAL Export                      | TOTAL Export      | 81,432.49                       | 1,22,748.08 |
|          | TOTAL Import                                                                         | TOTAL Import                      | TOTAL Import      | 1,26,904.86                     | 1,87.924.10 |

Source: DGCI&S

* Trade increase of 51% in exports and 48% in imports from the year of implementation of the FTA to 2023-24.

Note :  Countries viz., Bhutan, Nepal, Sri Lanka, Thailand, Singapore and Malaysia with which separate FTAs have been executed are excluded as they are also part of one of Regional Trade Agreements (RTAs) listed above, to avoid double counting of data.

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