Current Landscape of FTAs and RTAs

  • Number of Agreements
    As of 2025, India has 13 active Free Trade Agreements (FTAs) and several Preferential Trade Agreements (PTAs), with a few more under negotiation
    A government document confirms India has signed 14 FTAs and 6 PTAs to date

Major FTAs & Economic Partnerships

  • India–Sri Lanka FTA (1998; effective 2000): India’s earliest bilateral FTA boosting trade in goods
  • SAFTA (South Asian Free Trade Area): Covers SAARC nations (e.g., Pakistan, Bangladesh, Nepal); launched in 2004, effective from 2006. Targeted tariff elimination across South Asia by 2016 (with extended timelines for LDCs)
  • ASEAN–India FTA (Goods, Services, Investment): Framework signed in 2003, implemented in 2009–10. Facilitated bilateral trade growth—a milestone in India’s Look East outreach
  • India–Singapore CECA (2005): Comprehensive in scope—removing tariffs, fostering services, investment, aviation, and tech collaboration; reviewed periodically to deepen integration
  • India–South Korea CEPA (2009; effective 2010): Reduced tariffs in goods like automobiles; opened services (IT, finance); allowed FDI up to 65%; steering bilateral trade growth
  • India–UAE CEPA (2022): Strategic agreement with the Gulf Partner enhancing access across sectors like energy, manufacturing, services
  • India–EFTA TEPA (2024): Trade & Economic Partnership Agreement with EFTA nations—Switzerland, Norway, Iceland, Liechtenstein. Covers broad trade, investment, services, dispute settlement
  • India–UK CETA (2025): Recently signed comprehensive trade deal with the UK, opening sectors like automobiles, pharmaceuticals, whisky; carefully excludes sensitive areas like agriculture and dairy

Agreements Under Negotiation

India continues to negotiate FTAs with several partners:

  • Under Negotiation or Discussion:
    • Bangladesh, Canada, Israel, New Zealand, Oman, Peru, South Africa, EU, US, Qatar, Sri Lanka
  • Noteworthy Negotiations:
    • India–Australia CECA: Building on interim ECTA (2022), negotiations focus on critical minerals, services, agriculture, green energy—strategic for both sides
    • India–New Zealand: Free trade talks revived to enhance supply chains, trade in food processing, pharma, renewable energy

UPSC-Relevant Analytical Angles

DimensionRelevance and UPSC Insights
Economic DiplomacyFTAs help India diversify exports, integrate into global value chains, and secure vital inputs (e.g., minerals, technology).
Strategic AutonomyDeals like ASEAN and EFTA support geostrategic balancing and reduce overdependence on any single power.
Domestic SafeguardsExclusions of sensitive sectors (e.g., agriculture in India–UK FTA) show pragmatic policymaking balancing liberalization with socio-political imperatives.
Institutional LearningIndia’s evolving approach—from SAFTA to comprehensive FTAs—highlights its growing competence in multilateral and bilateral trade negotiations.
Forward LinkagesFTAs shape India’s ‘Make in India’ mission, ‘Atmanirbhar Bharat’, and net-zero ambitions by securing investments and enhancing competitiveness.
Global GovernanceComparing India’s bilateral FTAs vs. multilateral engagement (WTO) raises questions about the future of global trade regimes.

Summary: Key Points

  1. Strong FTA Foundation: India has developed a diverse portfolio of FTAs across South Asia, ASEAN, East Asia, Middle East, Europe.
  2. Deepening Reach: The newly signed India–UK deal marks a turning point in trade policy orientation.
  3. Strategic Expansion: Ongoing negotiations with partners like Australia, NZ, and the EU show India’s ambition to broaden economic linkages.
  4. UPSC Relevance: These agreements are central to discussions on foreign policy, trade economics, institutional capacity, and geopolitical strategy.

Understanding India’s trade agreements in this manner will equip you well for UPSC answers—especially in General Studies Paper II (International Relations, Economic Diplomacy) and GS Paper III (Economic Development, Trade).