Lok Sabha Question No. 2575 (UNSTARRED), answered on 2025-12-16
Subject: Foreign Trade Agreements and Rupee Trade
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Krishna Prasad Tenneti, Shri Manoj Tiwari, Dr. Hemang Joshi, Dr. K Sudhakar, Shri Balabhadra Majhi

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

## LOK SABHA UNSTARRED QUESTION NO. 2575 ANSWERED ON 16/12/2025

## FOREIGN TRADE AGREEMENTS AND RUPEE TRADE

2575. SHRI KRISHNA PRASAD TENNETI:

SHRI MANOJ TIWARI: DR. HEMANG JOSHI: DR. K SUDHAKAR: SHRI BALABHADRA MAJHI:

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

- (a) the current status and timeline for concluding FTAs with the UK and EU and the manner these agreements will enhance India's services exports;
- (b) the  manner  the  Government  is  promoting  and  tracking  the  Rupee  trade settlement mechanism with the RBI and the steps being taken to encourage more partner countries to open SRVAs;
- (c) the  strategies  being  used  to  grow  services  exports  in  sectors  like  FinTech, Geospatial services, and AVGC and the targets for 2026; and
- (d) the  progress  made  in  using  the  Trade  Connect  e-Platform  to  provide exporters with real-time data on tariff concessions and Rules of Origin under various FTAs?

## 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)  India  and  United  Kingdom  (UK)  have  signed  the  Comprehensive  Trade  and Economic Agreement (CETA) on 24 th  July, 2025. After entry into force, the India-UK CETA will provide predictable, open and favourable market access across wide range of  services  sectors  such  as   IT/ITES,  business  services,  professional  services, education, and healthcare. It also creates a structured framework for the temporary movement of service providers. Business visitors, contractual service suppliers, and independent professionals will be able to access the UK under clear and predictable temporary entry and stay rules. The Double Contribution Convention which will enter into force along with the FTA will provide a mechanism to avoid double payment of social security contributions. Additionally, up to 1,800 Indian chefs, yoga instructors, and  classical  musicians  will  be  able  to  work  in  the  UK  every  year  under  these provisions. After formal relaunch of India-EU Free Trade Agreement (FTA) negotiations in June 2022, fourteen rounds of negotiations have been concluded by October 2025. In the meetings held at various levels from 3-9 December 2025, both sides took note of the steady progress achieved across various negotiating tracks, including Services and agreed to sustain the momentum.

(b)  To promote growth of global trade with emphasis on exports from India and to support the increasing interest of global trading community in Indian Rupees (INR), an additional arrangement for invoicing, payment, and settlement of exports / imports in INR  was  put  in  place  vide  Authorised  Persons  (Directions  /  Dealer  Information/ Reporting)  Series  (A.P.  (DIR  Series))  Circular  No.  10  dated  July  11,  2022,  on International Trade Settlement in Indian Rupees. Additionally, in terms Reserve Bank of India's A.P. (DIR Series) Circular No. 08 dated August 05, 2025, Authorized Dealer banks are now allowed to open Special Rupee Vostro Accounts (SRVAs) of overseas correspondent banks without referring to the Reserve Bank for approval. Further, in terms of A.P. (DIR Series) Circular No. 14 dated October 03, 2025, on International Trade Settlement in Indian Rupees (INR), SRVA balances can now also be invested in  non-convertible  debentures/bonds  and  commercial  papers  issued  by  an  Indian company.

(c)  Services  exports  including  financial  services  is  a  key  component  in  bilateral engagements and FTAs. The National Geospatial Policy (NGP), 2022 envisages the growth  of  Geospatial  services,  including  their  contribution  to  India's  overall  digital services exports. The Policy aims to build a globally competitive Geospatial ecosystem through  an  enabling  framework  for  innovation,  improved  data  availability,  privatesector  participation,  and  capacity  development.  As  per  the  NGP  2022,  there  are milestones laid out up to  2025  and 2030  for establishing the foundational infrastructure, data frameworks, and institutional mechanisms required for expanding Geospatial services and their export potential. Further, government is taking several steps for growth in Animation, Visual Effects, Gaming, and Comics (AVGC) Services exports. The AVGC Promotion Task Force was set up by the Ministry of Information and  Broadcasting  in  April  2022  after  the  Union  Budget  announcement.  It  brought together industry and government to outline how India could scale skills, jobs and investment in animation, VFX, gaming and comics; and position the country as a global hub. The Task Force submitted its report in December 2022, recommending a National AVGC Mission, Centres of Excellence, stronger infrastructure and dedicated support for Indian Intellectual Property and exports. Indian Institute of Creative Technologies (IICT) Mumbai has been established and is being developed as a specialized Centre of Excellence to strengthen high-end training and research. With a focus on expanding high-quality production capacity, developing talent and improving access to international markets, World Audio Visual & Entertainment Summit (WAVES) 2025 was held in May 2025 as a global platform for the entire Media & Entertainment sector.

(d) Tariff Explorer service on Trade Connect ePlatform provides information on tariff concessions available to eligible Indian exports under various Free Trade Agreements (FTAs) and Preferential Trade Agreements (PTAs). It also provides details on Rules of  Origin  to  be  complied  with,  in  order  to  access  the  said  tariff  concessions.  The information  is  available  on  a  searchable  basis  with  exporters  having  option  of searching  by  the  Harmonised  System  (HS)  code  assigned  to  the  product  by  the destination country or by product description. The exporters may select the nearest matches to their products based on the search and understand the tariff and rules of origin  information. Updates  to  the  repository  are  undertaken  as  and  when  new information is received from authorised sources.

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