Lok Sabha Question No. 5149 (UNSTARRED), answered on 2026-03-24
Subject: Free Trade Agreements
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Manish Tewari

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

## LOK SABHA UNSTARRED QUESTION NO. 5149 ANSWERED ON 24/03/2026

## FREE TRADE AGREEMENTS

## 5149.  SHRI MANISH TEWARI:

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

- (a) whether  the  Government  is  aware  that  despite  signing  several  Free  Trade Agreements (FTAs) with partners such as the UK, New Zealand and Oman, and ongoing negotiations with the European Union, India's trade deficit with FTA partners has widened sharply in the first quarter of the current fiscal year and exports to key FTA markets such as ASEAN countries and the UAE have declined;
- (b) if  so,  the  reasons  for  the  limited  export  gains  from  these  FTAs,  including structural issues such as import-dependent inputs, cost competitiveness and non-tariff barriers;
- (c) whether the Government has reviewed the effectiveness of existing FTAs in boosting manufactured exports beyond sectors like electronics; and
- (d) the specific policy measures being considered to ensure that FTAs translate into  tangible  export  growth,  deeper  value-chain  integration  and  reduction  in trade deficits with partner countries?

## 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 FTA with UK and Oman but are yet to be implemented since they are under ratification process. Also, FTA negotiations with New Zealand and the European Union have been concluded on 22nd December 2025 and 27th January 2026 respectively. India - ASEAN- CECA and India-UAE CEPA has been signed and implemented.

Trade  trends,  in  particular  short-term,  including  for  exports  and  imports,  are shaped by a wide range of global and domestic factors, including economic growth, geopolitical  developments,  industry  demand,  energy  security  for  domestic  needs, commodity price movements and evolving supply chains. Trade flows annually and across both goods and services for the FTA with ASEAN and the UAE is at Annexure.

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 across sectors covering a wide range of economic activities. The FTAs

facilitate preferential  market  access  for  different  sectors,  cover  measures  for addressing  technical  barriers  to  trade  (TBT),  sanitary  and  phytosanitary  (SPS) measures, customs procedures, and regulatory cooperation etc. to facilitate exports.

Before entering into FTA, Government ensures that sector-specific stakeholder consultations are held at all stages of the negotiations. FTAs are negotiated with the endeavor to deliver a comprehensive, balanced, broad-based and equitable agreement based on the principle of fairness and reciprocity. It also ensures a level playing  field  for  Indian  exporters  vis-à-vis  their  competitors  in  the  trading  partner countries.

In  addition  to  this  structured  approach,  post-implementation,  the  Government  is continuously engaged with all stakeholders to advance trade through trade promotion, monitor progress, and promote 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.

(c) and (d)    Government regularly reviews existing Free Trade Agreements (FTAs) to ensure that they continue to serve India's economic and strategic interests, benefit domestic  industries  of  various  sectors.  These  reviews  address  multiple  aspects, including stakeholder and industry demands for improved market access for Indian goods and services, removal of non-tariff barriers, simplification of rules of origin and customs procedures, and modernization of agreements by incorporating new areas such as digital  trade,  investment,  and  supply  chains.  The  review  process  involves extensive consultations with stakeholders, industry associations, relevant Ministries and Departments, and partner countries, followed by negotiations for amendments or upgrades  wherever  required.  FTAs  are  reviewed  to  safeguard  India's  trade  and economic  interests  and  to  keep  them  aligned  with  national  priorities.  At  present Government  is  reviewing  ASEAN-India  Trade  in  Goods  Agreement  (AITIGA)  and India-Korea CEPA. The review of AITIGA and the India-Korea CEPA is needed to address tariff asymmetries and improve market access. Both FTAs are being reviewed to strengthen rules on origin, transparency, customs, and SPS/TBT disciplines and utilization.

## Government has taken several initiative and measures from time to time towards 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, outcomebased 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, EDIdriven  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.

*****

## India's Services Trade with UAE

|         |   2022 |   2023 |   2024 |
|---------|--------|--------|--------|
| Exports |   5276 |   5715 |   6122 |
| Imports |   3803 |   3936 |   4238 |
| Total   |   9079 |   9651 |  10360 |

( Value in Rs. Crore )

## ANNEXURE

Annexure referred to in reply to Part (a) to (b) of Lok Sabha Unstarred Question

## No. 5149 for answer on 24th March, 2026

## India's Merchandise Trade with UAE

| India's Merchandise Export to UAE   | India's Merchandise Export to UAE           | India's Merchandise Export to UAE   | India's Merchandise Export to UAE   | India's Merchandise Export to UAE   | India's Merchandise Export to UAE   |
|-------------------------------------|---------------------------------------------|-------------------------------------|-------------------------------------|-------------------------------------|-------------------------------------|
|                                     |                                             | 2022- 2023                          | 2023- 2024                          | 2024- 2025                          | Apr-Dec 2025                        |
| A                                   | Gems and Jewellery Products                 | 36964                               | 46480                               | 66673                               | 65771                               |
| B                                   | Petroleum Products                          | 46263                               | 69472                               | 68194                               | 64128                               |
| C                                   | Non-petroleum and Gems & Jewellery Products | 125931                              | 137901                              | 160227                              | 180152                              |
| Total Export (A+B+C)                | Total Export (A+B+C)                        | 209158                              | 253852                              | 295094                              | 310050                              |
| India's Merchandise Import from UAE | India's Merchandise Import from UAE         | India's Merchandise Import from UAE | India's Merchandise Import from UAE | India's Merchandise Import from UAE | India's Merchandise Import from UAE |
| A                                   | Gems and Jewellery Products                 | 118747                              | 118946                              | 166630                              | 229453                              |
| B                                   | Petroleum Products                          | 151618                              | 221928                              | 146039                              | 209214                              |
| C                                   | Non-petroleum and Gems & Jewellery Products | 64105                               | 86532                               | 85157                               | 98172                               |
| Total Import (A+B+C)                | Total Import (A+B+C)                        | 334470                              | 427406                              | 397826                              | 536838                              |

| Total Merchandise Trade   | 543628   | 681258   | 692921   | 846888   |
|---------------------------|----------|----------|----------|----------|

( Source: DGCIS

)

( Values in USD Million )

( Source: BaTIS

## India's Merchandise Trade with ASEAN

( Values in USD Million )

|             |   2024-25 |   April 2025 - Dec 25 |
|-------------|-----------|-----------------------|
| Export      |     39002 |                 30554 |
| Import      |     84209 |                 73822 |
| Total Trade |    123211 |                104376 |

( Source: DGCIS

)

)