Lok Sabha Question No. 3963 (UNSTARRED), answered on 2026-03-17
Subject: Free Trade Agreement
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Amra Ram, Shri Raja A

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

## LOK SABHA UNSTARRED QUESTION NO. 3963 ANSWERED ON 17/03/2026

## FREE TRADE AGREEMENT

## 3963.  SHRI AMRA RAM: SHRI RAJA A:

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

- (a) the names of the countries with which Free Trade Agreements (FTAs) have been made including the details of the said agreements and the tax which was being levied on the import and export before the agreement;
- (b) the  details  of  the  countries  with  which  the  agreement  for  agriculture  and  dairy products has been made by the Government; and
- (c) Whether any representations/complaints has received from stakeholders against such agreements which are detrimental to farm, dairy, MSME, textile, fisheries sector and if so, the response received?

## 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) and (b) India has signed sixteen (16) Free Trade Agreements (FTAs) with its trading partners, as detailed at Annexure. In addition, FTA negotiations with New Zealand and the European Union have been concluded on 22 nd  December, 2025 and 27 th  January, 2026 respectively. Also, India and the United States of America have announced on 7 th February  2026  that  the  USA  and  India  have  reached  a  framework  for  an  Interim Agreement regarding reciprocal and mutually beneficial trade (Interim Agreement).

FTAs are entered into with the concerned trading partner countries primarily with the aim of increasing bilateral trade through enlarging the scope of market access, securing duty  reductions  and  to  build  on  the  trade  complementarities  for  increasing  trade  and investment, thereby providing enhanced export potential and overall economic growth benefit to all the stakeholders.

Prior to the signing of these agreements, exports to partner countries were subject to applicable MFN import duties, such as Basic Customs Duty (BCD) and applicable cesses across a wide range of products, including agricultural goods, dairy, textiles, fisheries,

and other commodities. Post the FTAs, these tariffs have been reduced, ranging from complete elimination (zero duty) to partial cuts- thereby improving the competitiveness of Indian exports in partner markets, especially where competing countries already enjoyed zero or lower duty access.

Given the Voluminous data, the details of agreement and tariffs structure of FTAs and the salient features of recent FTAs may be sourced at https://www.commerce.gov.in/international-trade/ and https://www.pib.gov.in/PressReleasePage.aspx?PRID=2236134&reg=3&lang=1 respectively. Brief features of recent  FTAs are listed below:

- India-European Union FTA: Preferential Market Access on 96.8% of tariff lines which covers 99.5% of India's exports. 90.7% of exports (by trade value) to the EU to become duty-free on entry into force of the Agreement.
- India-United States trade framework (announced 7 February 2026) with United States:  India  and  the  US  have  reached  a  framework  for  an  interim  agreement regarding reciprocal and  mutually beneficial trade. The  U.S. will provide preferential market access to Indian goods, including textile and apparel, leather and  footwear,  plastic  and  rubber,  organic  chemicals,  home  décor,  artisanal products,  certain  machinery,  etc.    Subject  to  the  conclusion  of  the  Interim Agreement, the U.S. will reduce additional tariff on India to 0% on a wide range of products, such as gems and diamonds, aircraft parts, generic pharmaceuticals, certain machinery and parts, vegetable saps, certain instruments and apparatus, certain plastic and rubber, certain auto parts, etc
- India-Oman Comprehensive Economic Partnership Agreement (CEPA): India has secured 100% duty-free market access for its exports, covering 98.08% of Oman's tariff lines, representing 99.38% of India's export value. Prior to the FTA, Oman's tariff in the agriculture sector averaged 9%.
- India - UK Comprehensive Economic and Trade Agreement (CETA) provides an unprecedented duty-free access to almost 99 per cent of India's exports to the UK, covering nearly 100% of the trade value.   All  zero-duty concessions come into effect with entry into force. India's major exports-from labor-intensive sectors like textiles,  gems  &  jewellery,  leather  and  footwear,  organic  chemical,  artisanal products, and ceramics to high-value goods  like auto parts, machinery, pharmaceuticals, and processed foods have gain with zero-duty access to the UK.
- India-New Zealand FTA: New Zealand will provide 100% duty-free market access on  all  tariff  lines,  including  agri-processed  products,  marine  products,  dairy products and other rural livelihood-based products from the entry into force of the agreement. Before this, Indian Exports faced duties upto 10% in labour-intensive sectors.
- India-EFTA  Trade  and  Economic  Partnership  Agreement  (TEPA):  India  has secured a binding commitment from EFTA covering 92.2% of tariff lines (99.6% of India's exports), including 100% of non-agricultural products and tariff concessions on  Processed  Agricultural  Products  Prior  to  FTA,  duties  on  certain  agricultural products were as high as 249%. Key agricultural concessions include zero duty on coffee, rice, cashews, shrimps, coconuts, pineapples, fruit juice, honey and malt.

- India-Australia  Economic  Cooperation  and  Trade  Agreement:   In  the  FTA  all exports of India including food, agricultural and marine products are eligible for zero-duty  market  access  from  1  January  2026.  Earlier,  the  import  duty  on  key agricultural and marine products was up to 5%.
- India  and  United  Arab  Emirates  (UAE)  Comprehensive  Economic  Partnership Agreement (CEPA): India has secured duty-free and preferential market access on 97% of UAE tariff lines covering 99% of India's exports, with immediate duty elimination on over 80% of tariff lines, creating a transformational opportunity for Indian farmers, MSMES and other businesses.

These agreements are expansive and broad-based in nature and cover multiple areas of trade  and  economic  engagement,  including  commitments  to  investment  in  India (commitments  of  US  $100  billion  under  EFTA  and  US$  20  billion  under  India-New Zealand FTA) and thereby are not limited to the agriculture or dairy sectors.

India adopts a calibrated approach to safeguard sensitive sectors of agriculture and dairy. Sensitive agricultural and dairy products have been placed in the exclusion lists and kept outside the scope of tariff liberalisation to safeguard the interests of domestic farmers. India has fully protected its sensitive agricultural sectors through an Exclusion Category, with no tariff concessions on key products such as Rice, Wheat, Poultry, Dairy, Soyameal, Maize, Millets, Groundnuts, Honey, Tobacco etc.

For certain selected products, to meet domestic industry and consumer demand, limited market access has been provided and imports are regulated through restricted and monitored Tariff Rate Quotas (TRQs) and other safeguard mechanisms, including Minimum Import Price, Seasonal windows and linked Agricultural Productivity partnerships for assisting farmers boost agricultural productivity.  This approach ensures national interest while simultaneously boosting India's participation in global value chains.

(c): The  Government  routinely  receives  representations  and  also  proactively engages  with  industry  bodies  and  other  stakeholders  in  respect  of  various  sectors, including  agriculture,  diary,  MSMEs,  fisheries,  engineering,  and  others.  Consultations with stakeholders are a continuous process and are undertaken before, during, and after trade negotiations, including during the implementation phase of FTAs, so as to ensure that the agreements are balanced, inclusive, and aligned with the interests and needs of all domestic stakeholders. Such representations are duly examined in consultation with the concerned Ministries/Departments and stakeholders. Institutional mechanisms such as Joint Committees and Sub-Committees constituted under the FTAs are also utilized to review implementation issues and address concerns of domestic industry. In addition, appropriate Rules of Origin, trade remedy measures, including safeguard mechanisms, are  available  under  the  FTAs  to  address  any  adverse  impact  of  imports  on  domestic industry.  FTAs are regularly monitored and reviewed to ensure that India's trade and economic  interests  continue  to  be  adequately  safeguarded  and  remain  aligned  with national priorities.

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## Annexure

## ANNEXURE REFERRED TO IN REPLY TO PART (a) AND (b) OF THE LOK SABHA UNSTARRED QUESTION NO. 3963 FOR ANSWER ON 17.03.2026.

## Free Trade Agreements (FTAs) signed by India

|   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                                                      | 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                                                        | This Treaty shall be automatically extended for further periods of seven years at a time, unless either of the parties gives to the other a written notice, three months in advance, of its intention to terminate the Treaty.                                                                                                                                                             |
|         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 | 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   |
|----|----------------------------------------------------------------------------------------------|----------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  8 | India - South Korea CEPA                                                                     | 7 th August, 2009    | 1 st 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 (ECTA)                              | 2 nd April, 2022     | 29 th December 2022.                                                                                                                                                                                                                                                                                                     |
| 14 | India-European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA) | 10 th March 2024     | 01 st October 2025                                                                                                                                                                                                                                                                                                       |
| 15 | India - UK Comprehensive Economic and Trade Agreement (CETA)                                 | 24 th July 2025      | Under ratification process                                                                                                                                                                                                                                                                                               |
| 16 | India - Oman Comprehensive Economic Partnership Agreement (CEPA)                             | 18 th December 2025  | Under ratification process                                                                                                                                                                                                                                                                                               |

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