Lok Sabha Question No. 45 (STARRED), answered on 2026-02-03
Subject: Free Trade Agreements
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Mukeshkumar Chandrakaant Dalal, Shri Atul Garg

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

## LOK SABHA STARRED QUESTION NO.45

ANSWERED ON 03/02/2026

## FREE TRADE AGREEMENTS

## *45.    SHRI MUKESHKUMAR CHANDRAKAANT DALAL: SHRI ATUL GARG:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

- (a) whether  the  Government  has  pursued  new  bilateral  and  multilateral  Free  Trade Agreements (FTAs) focusing on market access, tariff rationalisation, services mobility and investments, if so, the details thereof;
- (b) whether such agreements are aligned with India's manufacturing and export priorities, if so, the details thereof;
- (c) whether the Government has conducted sector-wise assessments to identify high-growth export  sectors  such  as  pharmaceuticals,  electronics,  textiles,  marine  products  and engineering goods that may benefit from FTAs, if so, the details thereof;
- (d) whether adequate safeguards have been built into trade agreements to protect sensitive sectors like agriculture, dairy and Micro, Small and Medium Enterprises (MSMEs) while maximising export gains, if so, the details thereof;
- (e) whether  the  Government  is  working  with  industry  associations,  export  councils  and global  partners  to  create  awareness  on  utilisation  of  FTA  benefits,  if  so,  the  details thereof; and
- (f) whether the Ministry has analysed the manner in which new FTAs will strengthen India's global  trade  footprint,  attract  foreign  investment  and  integrate  Indian  businesses  into global supply chains, if so, the details thereof?

## ANSWER

## THE MINISTER OF COMMERCE & INDUSTRY

(SHRI PIYUSH GOYAL)

(a) to (f): A statement is laid on the Table of the House.

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## STATEMENT REFERRED TO IN REPLY TO PART (a) TO (f) OF LOK SABHA STARRED QUESTION NO.*45 FOR ANSWER ON 03 RD  FEBRUARY, 2026 REGARDING 'FREE TRADE AGREEMENTS'

(a)         Government  is  pursuing  negotiations  for  new  bilateral  and  multilateral  free  trade agreements (FTA) primarily to increase trade, including through enhanced market access, trade in services, addressing non-tariff barriers, investment promotion, and economic and technical co-operation. FTAs aim to build on trade complementarities to increase trade and investment, thereby enhancing export potential, creating prospects for industry and farmers, and creating job opportunities. In this Financial Year, Government has concluded FTAs with the United Kingdom (UK), Oman, New Zealand and the European Union (EU). Additionally, Government has signed following FTAs in recent years.:

|   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 th December 2022.                      |
|         4 | India-European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA) (Iceland, Liechtenstein, Norway, and Switzerland) | 10 th March 2024                   | 01 st October 2025                        |

(b) and (c):     In order to ensure that trade agreements are aligned with India's manufacturing and export priorities, the Government  consults with stakeholders, including industry representatives, 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.  In  addition  to  this  structured  approach,  sector-specific  consultations  are  also carried out to identify high-growth export sectors such as pharmaceuticals, electronics, textiles, marine products, and engineering goods that may benefit from FTAs.

(d)       To protect the interests of the domestic industry and sensitive sectors like agriculture, dairy, and MSMEs, 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 a 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.

(e)        Government is actively working with industry associations, Export Promotion Councils (EPCs), academic institutions such as IIFT and other stakeholders from time to time to create awareness  on  the  utilisation  of  Free  Trade  Agreement  (FTA)  benefits.  Government  holds regular  outreach  programmes  on  FTAs,  including  sector-specific  sessions,  MSME  cluster programmes,  etc.,  with  concerned  stakeholders,  including  the  Indian  Missions  abroad,  the Export Promotion Councils, the trade associations, the concerned ministries/departments to disseminate the opportunities under the FTA. These initiatives cover key aspects such as tariff concessions, Rules of Origin, certification procedures and compliance requirements, and are conducted in coordination with industry bodies and global partners wherever relevant. Some of the other initiatives of Government which also contributes to better FTA utilisation are given below:

- i. Government has approved the Scheme for Export Promotion Mission (EPM) for the period FY  2025-26 to FY  2030-31, aimed at strengthening India's export competitiveness - particularly for MSMEs.
- ii. Department  of  Commerce,  facilitates  the  participation  of  its  member  exporters,  in International Trade fairs thereby promoting use of FTAs.
- iii. Under the trade-policy framework, the DGFT notifies calibrated export measures (such as  Minimum Export Price  and,  where  necessary,  temporary  restrictions)  to  balance domestic availability and price stability with the interests of producers.
- iv. Bharat Trade Net (BTN), announced in the Union Budget 2025, is a flagship digital public  infrastructure  programme  of  Government.  The  initiative  enhances  MSME competitiveness by enabling simpler, paperless documentation, reducing compliance burdens, and facilitating faster, secure trade transactions recognized globally.
- v. The introduction of grassroots programs such as Districts as Export Hubs (DEHs) and E-Commerce  Export  Hubs  enables  MSMEs,  start-ups, and artisans to access international markets at lower costs and with simplified export processes.
- vi. The  Export  Credit  Guarantee  Corporation  of  India  (ECGC)  has  introduced  several measures to support MSME exporters such as Collateral-Free Cover under WT-ECIB, enhanced 90% cover for banks on export credit loans up to 50 crore ₹(earlier 20 crore) without  incremental  cost,  w.e.f.  01.10.2025,  enhanced  cover  for  banks  and  directly sourced business, etc.
- vii. Ministry  of  Micro  Small  and  Medium  Enterprises  (MSME)  has  set  up  a  dedicated support  system  for  export  promotion  by  setting  up  65  Export  Facilitation  Centres (EFCs).
- viii. CBIC in collaboration with the Department of Posts has notified the Postal Exports (Electronic Declaration and Processing) Regulations, 2022.
- ix. The  GST  Council  has  also  recommended  relaxation  of  conditions  for  interstate movement  of  goods  meant  for  e-commerce  exports,  thereby  addressing  a  key operational bottleneck for MSMEs and enabling seamless movement of consignments across states prior to export.
- x. Under the "Districts as Export Hubs (DEH)" initiative, focus export items in districts are identified with District Export Action Plans (DEAPs) prepared in consultation with State  authorities  and  stakeholders  to  address  value-chain  gaps  in  infrastructure, logistics, quality upgradation and market linkages.
- xi. APEDA,  under  the  Department  of  Commerce,  provides  financial  assistance  to  its registered exporters through its Financial Assistance Scheme (FAS).

(f)         FTAs  are  targeted  at  strengthening  India's  global  trade  footprint,  attracting  foreign investment, and integrating Indian businesses into global supply chains. Indicatively, among the recently signed FTAs, the Trade and Economic Partnership Agreement (TEPA) signed with the European Free Trade Association (EFTA) in March 2024 and implemented in October 2025 provides access to 99.6% of India's exports to the EFTA, including full access for non-agri goods and concessions on processed agri products. EFTA has also committed to boost Foreign

Direct  Investment  (FDI)  in  India  by  USD  100  billion  over  15  years.  The  India  -  United Kingdom (UK) Comprehensive Economic and Trade Agreement (CETA) signed on 24 July 2025  secures  duty-free  access  for  99%  of  India's  exports  to  the  UK.  The  India  -  Oman Comprehensive Economic Partnership Agreement (CEPA) signed on 18 December 2025 marks an important milestone in India's engagement with the Gulf region. Recently concluded FTA negotiations  with  New  Zealand  provide  duty-free  access  for  all  Indian  exports  and  a commitment from New Zealand to facilitate investments of USD 20 billion into India over the next fifteen years. India, 4th largest economy, and the European Union, 2nd largest economy, comprising 25% of Global GDP, have forged a Trusted Partnership with India EU FTA. There is Market Access of Over 99% of Indian exports gaining preferential entry into the EU. The FTA will open new opportunities for MSMEs and create jobs for women, artisans, youth and professionals. The FTA offers growth potential in labour-intensive sectors like textiles, leather, marine products, gems and jewellery. India has safeguarded sensitive Agricultural products and Dairy Sector. The long-term tariff predictability amongst FTA partner countries is likely to  encourage investments and creation on new supply chains including diversification. The FTA covers a vast range of services sectors spectrum in which Indian service providers will get  a  stable  and  conducive  regime  in  the  EU  market  to  supply  their  services.  The  FTA  is expected to provide a boost to Indian traditional medicine services and practitioners. In the EU Member States where regulations do not exist, AYUSH practitioners will be able to provide their services using the professional qualifications they gain in India

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