Lok Sabha Question No. 5280 (UNSTARRED), answered on 2026-03-24
Subject: India's Trade Agreements
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Jagdambika Pal

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

## LOK SABHA UNSTARRED QUESTION NO. 5280 ANSWERED ON 24/03/2026

## INDIA'S TRADE AGREEMENTS

## 5280.  SHRI JAGDAMBIKA PAL:

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

- (a) the  details  of  all  trade  agreements,  including  Free  Trade  Agreements  (FTAs), Comprehensive Economic Partnership Agreements (CEPAs), and Preferential Trade Agreements (PTAs), signed by India with other countries since the financial year 201415, along with the dates of signing and entry into force;
- (b) the  major  sectors  covered  under  each  such  agreement  and  the  tariff  concessions extended by India thereunder;
- (c) the increase in India's total exports and imports under these agreements compared to pre-agreement levels, year-wise during the said period;
- (d) whether these agreements have led to any trade deficits with partner countries and if so, the details thereof along with the corrective measures taken by the Government in this regard; and
- (e) the overall contribution of these agreements to India's GDP growth, job creation, and foreign exchange reserves since 2014-15, supported by data from the Ministry of Commerce and Industry?

## 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) & (b) Since 2014-15 India has signed 06 Free Trade Agreements (FTAs), Comprehensive Economic Partnership Agreements (CEPAs), and Preferential Trade Agreements (PTAs) with  its  trade  partners  namely,  Mauritius,  United  Arab  Emirates  (UAE),  Australia, European Free Trade Association (EFTA), the United Kingdom (UK) and Oman. FTA with UK and Oman are yet to be implemented. The details are placed at Annexure.

In addition, FTA negotiations with New Zealand and the European Union have been concluded  on  22nd  December  2025  and  27th  January  2026  respectively.  Also,  a  joint statement by India and the United States (U.S.) on a trade deal was released on February 07 2026. On February 07, 2026, 25% additional ad valorem tariffs imposed by the U.S. on certain India's exports citing India's imports of Russian oil were removed. Pursuant to U.S. Supreme Court judgement dated February 20, 2026 invalidating reciprocal tariffs, the reciprocal tariffs are no longer in force. The U.S. Government has issued Executive Orders imposing 10% tariffs on  certain  products  from all countries. The  Government  is  studying  all the developments and remains engaged with the U.S. Government.

The details of tariffs structure and salient features of these FTAs may be sourced at https://www.commerce.gov.in/international-trade/.  Brief  features  of  these  FTAs  along  with major sectors covered are listed below:

- India-Mauritius  CECPA:  Major  sectors  covered  includes  food  stuff  and  beverages, agricultural  products,  textile  and  textile  articles,  base  metals  and  articles  thereof, electricals and electronic item, plastics and chemicals etc. India will receive preferential  access  for  310  export  items  (78%  of  total  lines)  to  Mauritius,  while Mauritius will be benefited from preferential market access into India for 615 products (90% of total trade lines). Indian service providers have been granted market access in around 115 sub-sectors across 11 broad service sectors in Mauritius. India, in turn, has offered market access in around 95 sub-sectors covering 11 broad service sectors to Mauritius.
- India  and  United  Arab  Emirates  (UAE)  Comprehensive  Economic  Partnership Agreement (CEPA): Under CEPA, India has secured duty-free and preferential market access  on  97%  of  UAE  tariff  lines  covering  99%  of  India's  exports,  creating  a opportunity for Indian farmers, MSMES and other businesses. Major sectors covered includes Refined Crude oil products, Gems and Jewellery, Textiles, leather, footwear, sports goods, plastics, furniture, agricultural and wood products, engineering products, pharmaceuticals, medical devices, Automobiles etc.  64.61% of tarrif lines have been identified in the Immediate Elimination list; imports from the UAE on these become duty free immediately upon entry into force of the CEPA. 18.27% and 1.89% tarrif lines are in Phased Elimination, where the basic customs duty would be brought to zero in a phased manner of 5/7 years and 10 years respectively from the date of entry into force of CEPA. 5.51% of tarrif lines are in Phased reduction list where the UAE has been  given  up  to  50%  tariff  reduction  with  or  without  a  tariff-rate  quota  (TRQ). Considering domestic sensitivities, the remaining 9.72% of the tarrif lines  have been kept in exclusion list.
- India-Australia Economic Cooperation and Trade Agreement (ECTA): Under ECTA, 100 per cent market access  with zero duty has been extended by Australia from 1st January  2026. The  major  sectors  included  in  ECTA  are  textiles,  pharmaceuticals, chemicals, agriculture, Engineering and Machinery etc. India has extended preferential access to Australia across more than 70% of its tariff lines. India will provide zero duty access immediately on 40.3% of its tariff lines and the remaining 30% in phased manner over a period of 3, 5, 7 and 10 years. This also includes 125 tariff lines where there will be duty reduction and not elimination. India has kept many sensitive products in the exclusion category without offering any concession. India has kept 29.8% of its tariff lines under exclusion list such as Milk and other dairy products, chickpeas, walnut, pistachio nut, wheat, rice, bajra, apple, sunflowers seed oil, gold, silver, platinum, jewellery, iron ore, most medical devices etc.
- India-EFTA Trade and Economic Partnership Agreement (TEPA): India has secured binding  commitment  from  EFTA  covering  92.2%  of  tariff  lines  (99.6%  of  India's exports).  Major  sectors  like  machinery,  organic  chemicals,  textiles,  Gems  and Jewellery , Electronics  and  Software  processed  foods  etc  is  covered  Under  TEPA. India's  offer  to  EFTA  covers  82.7%  of  tariff  lines,  accounting  for  95.3%  of  EFTA exports.  Over 80% of these imports are Gold, with no change in effective duty on Gold . Sensitive sectors protected including pharma, medical devices, processed food, dairy, soya, coal, and sensitive agricultural products.
- India - UK Comprehensive Economic and Trade Agreement (CETA): The India-UK CETA provides  duty-free  access  for  more  than  99%  of  India's  exports  to  the  UK, covering nearly 100% of the trade value. This includes labour-intensive sectors such as textiles, leather, marine products, gems and jewellery, and toys as well as highgrowth sectors like engineering goods, electrical and electronic equipment, chemicals, and auto components. The agreement also covers select agro and marine products, chemicals and allied sectors, pharmaceuticals, plastics, rubber products, and certain industrial and consumer goods. Under the FTA, India has opened 89.5 % of its tariff

lines covering 91 % of UK's export. 24.5 % of UK's export will enjoy immediate dutyfree market access. India has safeguarded sensitive sectors like dairy, cereal, millets, pulses, certain essential oils, apples, certain vegetables, gold, jewellery, lab grown diamonds. Strategic exclusions also cover critical energy, fuels, marine vessels, some polymers,  worn  clothing,  smart  phones,  optic  fibres.  For  strategically  important products where domestic capacity is being built, for example under Make in India or PLI, India will provide gradual tariff reduction over 5, 7 or 10 years.

- India-Oman  Comprehensive  Economic  Partnership  Agreement  (CEPA):  India  has secured 100% duty-free market access for its exports to Oman, covering 98.08% of Oman's tariff lines, representing 99.38% of India's export value. The agreement opens export  opportunities  across  a  wide  range  of sectors , including minerals,  chemicals, base  metals,  machinery,  plastics  and  rubber,  transport  and  automotive  products, instruments  and  clocks,  glass,  ceramics,  marble,  paper,  textiles,  agricultural  and processed food products, marine products, and gems and jewellery and many more . India has offered tariff liberalization on 77.79 per cent of its total tariff lines , covering 94.81 per cent of India's imports from Oman by value. At the same time, India has placed multiple tariff  lines  in  the  exclusion  list  to  protect  key  domestic  sectors  and sensitive  value-chain  industries and  also  safeguard  manufacturing  competitiveness and farmer interests.

(c) to (e) The details of India's total exports and imports under the signed and implemented agreements are placed at Annexure-II.

Free Trade Agreements (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 and building on the trade complementarities for increasing trade and investment, thereby providing enhanced export potential, creating benefits for industry and farmers and enhancing  job  opportunities.  The  FTAs  facilitate  preferential  market  access  for  labour intensive sector products to boost growth and employment opportunities in sectors like textile, apparel and leather goods. FTAs  endeavor to deliver a comprehensive, balanced, broadbased and equitable agreement based on the principle of fairness and reciprocity and overall benefit to all the stakeholders.

Before  entering  into  new  FTA  negotiations,  the  government  ensures  that  sectorspecific stakeholder consultations are held at all stages of the negotiations. In addition to this structured approach, post-implementation, the Government is continuously engaged with all stakeholders  to  advance  trade  through  trade  promotion,  trade  facilitation  and  remedial measures for elevating trade and economic growth. Strategic safeguards for sensitive sectors ensure export growth while protecting domestic priorities. Also, FTAs provide institutional arrangements for addressing trade related issues faced by stakeholders, including exporters, with partner countries.

Government  is continuously engaged  with industry associations, concerned stakeholders, including the Indian Missions abroad, the Export Promotion Councils, the trade associations, the concerned ministries/departments to advance trade. Government aims to promote trade and economic growth through trade promotion, FTAs, trade facilitation and remedial measures related to import and export. Government has taken several initiative and measures from time to time towards enhancing domestic capacities, boosting exports from the country:

(i)   The Foreign Trade Policy effective from April 01, 2023 is designed to integrate India more effectively into the global market, improve trade competitiveness, and establish the country as a reliable and trusted trade partner.

(ii)   The Rebate of State and Central Levies and Taxes (RoSCTL) Scheme to promote labour- oriented certain items of textiles sector export has been implemented since March 07, 2019.

(iii) Remission of Duties and Taxes on Exported Products (RoDTEP) scheme has been implemented since January 01, 2021. The benefit of RoDTEP scheme had also been extended to sectors like steel, pharma and chemicals with effect from December 15, 2022 to enhance export competitiveness of these sectors. Currently, approx 10,780 tariff lines (8-digit  ITC(HS)  Codes)  are  covered  under  this  Scheme.  The  budget  allocation  for RoDTEP Scheme for the current financial year 2025-26 is Rs. 18,232 crores. The benefits of the RoDTEP scheme have been extended to exports from Domestic Tariff Area (DTA)/ AA/ EoU/ SEZ units till March 31, 2026.

(iv) A Common Digital Platform for Certificate of extension Origin has been launched to facilitate trade and increase Free Trade Agreement (FTA) utilization by exporters.

(v)   Districts  as  Export  Hubs  initiative  has  been  launched  by  identifying  products  & services with export potential in each district, addressing bottlenecks for exporting these products and supporting local exporters/manufacturers to generate employment in the district.

(vi) The Government has launched Trade Connect ePlatform as a unified digital interface to provide international trade information and services to all Indian exporters including MSMEs. The platform serves as a single platform for issuance of Certificates of Origin for all Indian products. It also provides various information including tariffs for Indian products in international markets, trade events happening worldwide, product and country specific trade  data  and  compliances,  international  buyer  data  and  learning  resources  on international trade. Officials from Indian Missions, Export Promotion Councils, Exim Bank and Department of Commerce are present on the platform with over 19 lakh registered public users (as of January 2026).

(vii)            The Export Promotion Mission (EPM), approved by the Cabinet on 12.11.2025 and announced in the Union Budget 2025-26, is a flagship, outcome-based initiative with an outlay  of  ₹25,060  crore  for  FY  2025-26  to  FY  2030-31  to  enhance  India's  export competitiveness, particularly for MSMEs, first-time exporters, and labor-intensive sectors; implemented  through  a  collaborative,  EDI-driven  framework,  it  consolidates  various interventions into two sub-schemes - NIRYAT PROTSAHAN, providing affordable trade finance support, and NIRYAT DISHA, offering non-financial assistance such as quality compliance, branding, logistics, market access, and capacity building.

(viii)           Active role of Indian missions abroad towards promoting India's trade, tourism, technology  and  investment  goals  has  been  enhanced.  Regular  monitoring  of  export performance with Commercial Missions abroad, Export Promotion Councils, Commodity Boards/Authorities and Industry Associations is being done and corrective measures are being taken from time to time.

Macroeconomic  indicators,  including  GDP  growth,  employment  generation,  and foreign exchange reserves, are multi-dimensional and shaped by a wide array of factors, including domestic policy frameworks, structural reforms, demographic trends, and prevailing global economic conditions. FTAs serve as important enablers by facilitating market access, enhancing  export  competitiveness,  attracting  investment,  and  integrating  economies  into global value chains.

As per Economic Survey, despite global uncertainty, India has displayed strong of 6.4 per cent. The  Economic Survey  states  that  as  a  result  of  stable  capital  flows,  India's  foreign exchange reserves increased from USD 616.7 billion at the end of January 2024 to USD 704.9 billion in September 2024 before moderating to USD 634.6 billion as on 3 January 2025. India's forex reserves are sufficient to cover 90 per cent of external debt and provide an import cover of more  than ten months, thereby safeguarding against external vulnerabilities.

A brief on the growth statistics rate of India and the reserve may be seen at Economic Survey https://www..indiabudget.gov.in/economicsurvey/doc/eschapter/echap01.pdf and link: https://www.pib.gov.in/PressReleasePage.aspx?RID=2219907&reg=3&lang=2

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## Annexure-I

## Annexure referred to in reply to Part (a) to (b) of Lok Sabha Unstarred Question No. 5280 for answer on 24th March, 2026

## India's Free Trade Agreements since 2014

|   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) | 10 th March 2024                   | 01 st October 2025                        |
|         5 | India - UK Comprehensive Economic and Trade Agreement (CETA)                                 | 24 th July 2025                    | Under ratification process                |
|         6 | India - Oman Comprehensive Economic Partnership Agreement (CEPA)                             | 18 th December 2025                | Under ratification process                |

## ANNEXURE-II

## Annexure referred to in reply to Part (c) to (e) of Lok Sabha Unstarred Question No. 5280 for answer on 24th March, 2026

| Mauritius     | Mauritius               | Mauritius               | Mauritius               | Mauritius               | Mauritius               | Mauritius               |
|---------------|-------------------------|-------------------------|-------------------------|-------------------------|-------------------------|-------------------------|
|               | (Values in USD Million) | (Values in USD Million) | (Values in USD Million) | (Values in USD Million) | (Values in USD Million) | (Values in USD Million) |
|               | 2020-21                 | 2021-22                 | 2022-23                 | 2023-24                 | 2024-25                 | Apr 2025 - Dec 2025     |
| Export        | 422.91                  | 714.85                  | 462.69                  | 778.03                  | 676.49                  | 397.94                  |
| Import        | 42.61                   | 71.87                   | 91.50                   | 73.10                   | 210.82                  | 88.00                   |
| Trade Balance | 380.30                  | 642.98                  | 371.20                  | 704.94                  | 465.68                  | 309.94                  |

Source: DGCIS

|               | UAE                     | UAE                     | UAE                     | UAE                     | UAE                     | UAE                     |
|---------------|-------------------------|-------------------------|-------------------------|-------------------------|-------------------------|-------------------------|
|               | (Values in USD Million) | (Values in USD Million) | (Values in USD Million) | (Values in USD Million) | (Values in USD Million) | (Values in USD Million) |
|               | 2020-21                 | 2021-22                 | 2022-23                 | 2023-24                 | 2024-25                 | Apr 2025 - Dec 2025     |
| Export        | 16679.54                | 28044.88                | 31608.79                | 35625.02                | 36638.02                | 32837.22                |
| Import        | 26622.99                | 44833.48                | 53231.55                | 48025.58                | 63403.01                | 56595.36                |
| Trade Balance | -9943.45                | -16788.60               | -21622.76               | -12400.56               | -26764.98               | -23758.14               |

Source: DGCIS

|               | Australia   | Australia   | Australia   | Australia   | Australia   | Australia           |
|---------------|-------------|-------------|-------------|-------------|-------------|---------------------|
|               | (Values in  | (Values in  | (Values in  | (Values in  | (Values in  | (Values in          |
|               | 2020-21     | 2021-22     | 2022-23     | 2023-24     | 2024-25     | Apr 2025 - Dec 2025 |
| Export        | 4043.88     | 8283.13     | 6951.32     | 7940.75     | 8581.38     | 6064.24             |
| Import        | 8247.30     | 16756.17    | 19011.31    | 16159.20    | 15526.46    | 11607.25            |
| Trade Balance | -4203.42    | -8473.04    | -12059.99   | -8218.45    | -6945.08    | -5543.01            |

Source: DGCIS

India  -  EFTA  TEPA  signed  on  10 th   March  2024  was  implemented  with  effect  from  01st October, 2025. Since TEPA has recently been implemented, the available trade data with EFTA for this period is provisional, which may be seen at https://ftddp.dgciskol.gov.in/dgcis/