{"id":67762,"date":"2026-02-27T20:30:38","date_gmt":"2026-02-27T15:00:38","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=67762"},"modified":"2026-02-27T20:32:28","modified_gmt":"2026-02-27T15:02:28","slug":"india-global-trade-ftas","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/27-02-2026\/india-global-trade-ftas","title":{"rendered":"India Secures Preferential Access to Two-Thirds of Global Trade Through FTAs"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/ Economy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Union Minister of Commerce and Industry said that India now enjoys preferential trade access to nearly two-thirds of global trade through a series of free trade agreements.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Free Trade Agreement (FTA)<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>FTAs are arrangements between two or more countries or trading blocs that primarily agree to <strong>reduce or eliminate customs tariff and non tariff barriers<\/strong> on substantial trade between them.\n<ul class=\"wp-block-list\">\n<li>They can <strong>cover both goods and services<\/strong>. It also addresses issues such as investment, mobility of professionals, and regulatory cooperation.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>India uses different terms<\/strong> to denote the scope and depth of trade agreements.\n<ul class=\"wp-block-list\">\n<li><strong>CECA\/CEPA (Comprehensive Economic Cooperation\/Partnership Agreement): <\/strong>Covers goods, services, investment, intellectual property, and regulatory issues.<\/li>\n\n\n\n<li><strong>ECTA (Economic Cooperation &amp; Trade Agreement)<\/strong><\/li>\n\n\n\n<li><strong>TEPA (Trade &amp; Economic Partnership Agreement)<\/strong><\/li>\n\n\n\n<li><strong>CETA (Comprehensive Economic and Trade Agreement)<\/strong><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>India has secured preferential tariff access to markets covering <strong>roughly 70% of global GDP <\/strong>and trade flows. India now has <strong>trade arrangements with 38 high-income economies,<\/strong> many complementary to its export strengths.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Major FTAs signed in recent years<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>India\u2013UAE CEPA ( 2022): <\/strong>The pact opened 99% of tariff lines (zero-duty on nearly all consumer and industrial exports) and expanded services and manpower mobility.<\/li>\n\n\n\n<li><strong>India\u2013Australia ECTA ( 2022): <\/strong>The deal eliminates tariffs on all Australian exports to India and on the entire range of Indian exports.<\/li>\n\n\n\n<li><strong>India\u2013EFTA TEPA (2024)<\/strong>: The Trade and Economic Partnership Agreement (TEPA) with the four EFTA countries (Switzerland, Norway, Iceland, Liechtenstein) was signed in 2024 and enters force in 2025.<\/li>\n\n\n\n<li><strong>India\u2013UK CETA (2025): <\/strong>It grants duty-free access to nearly 99% of India\u2019s exports to Britain.<\/li>\n\n\n\n<li><strong>India\u2013Oman CEPA ( 2025):<\/strong> Oman offered zero-duty on 98.08% of its tariff lines, covering 99.38% of India\u2019s exports to Oman.<\/li>\n\n\n\n<li><strong>\u00cdndia\u2013EU FTA (2026): <\/strong>Under the pact, 97% of EU tariff lines will be covered (about 99.5% of trade value), with India eliminating tariffs on 70.4% of tariff lines at entry.\n<ul class=\"wp-block-list\">\n<li><strong>The EU agreement<\/strong> alone covers markets responsible for about <strong>one-third of global trade.<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>ftas under negotiation<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Gulf Cooperation Council (GCC): <\/strong>Negotiations formally launched in February 2026 with the Gulf Cooperation Council. The bloc includes Saudi Arabia, UAE, Oman, Qatar, Kuwait, and Bahrain.<\/li>\n\n\n\n<li><strong>Israel:<\/strong> India and Israel have initiated FTA negotiations, with the first round already held.<\/li>\n\n\n\n<li><strong>Chile:<\/strong> Terms of Reference signed in 2025 to launch negotiations with Chile.<\/li>\n\n\n\n<li><strong>Canada: <\/strong>Negotiations with Canada have been revived after earlier disruptions.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Significance of India\u2019s Expanding FTA Network<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Accelerated Export Growth: <\/strong>FTAs reduce or eliminate import duties in partner countries, making Indian goods more price-competitive.<\/li>\n\n\n\n<li><strong>Integration into Global Value Chains (GVCs): <\/strong>FTAs facilitate participation in cross-border production networks by lowering input costs and simplifying trade rules.\n<ul class=\"wp-block-list\">\n<li>Indian firms can import intermediate goods at lower tariffs and export finished products competitively.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Gains Labour-Intensive Sectors:<\/strong> Micro, Small and Medium Enterprises (MSMEs) account for a large share of India\u2019s exports.\n<ul class=\"wp-block-list\">\n<li>FTAs open new markets for products like handicrafts, textiles, leather goods, processed food, and light engineering items.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Attraction of Foreign Direct Investment (FDI):<\/strong> FTAs improve investor confidence by ensuring stable market access and predictable trade rules.\n<ul class=\"wp-block-list\">\n<li>Companies invest in India to use it as an export base to partner countries, facilitating technology transfer, skill development, and capital inflows.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Concerns with FTAs<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Risk of Trade Imbalances: <\/strong>Past FTAs have, in some cases, led to imports rising faster than exports, widening the trade deficit.\n<ul class=\"wp-block-list\">\n<li>For instance, India\u2019s trade deficit with ASEAN expanded significantly after tariff reductions under the 2010 Goods Agreement.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Competitive Pressure on Domestic Industries:<\/strong> Domestic industries often fear being outcompeted by cheaper or technologically superior foreign goods.\n<ul class=\"wp-block-list\">\n<li>Sectors such as dairy, agriculture, automobiles, steel, and electronics are particularly sensitive in FTA negotiations.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Way Ahead<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India\u2019s expanding FTA network marks a decisive shift toward deeper global economic integration. By securing preferential access to markets, India is positioning itself as a <strong>major export hub<\/strong> and<strong> supply-chain partner.\u00a0<\/strong><\/li>\n\n\n\n<li>If complemented by <strong>domestic reforms and industry preparedness,<\/strong> these agreements can significantly advance India\u2019s goal of becoming a leading global trading power and achieving a <strong>trillion-dollar export economy.<\/strong><\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/ddnews.gov.in\/en\/india-secures-preferential-access-to-two-thirds-of-global-trade-through-ftas-piyush-goyal\/#:~:text=Union%20Minister%20of%20Commer\" target=\"_blank\" rel=\"noopener\"><strong>DD News<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong> Context <\/strong><\/p>\n<li class=\"ms-5\"> The Union Minister of Commerce and Industry said that India now enjoys preferential trade access to nearly two-thirds of global trade through a series of free trade agreements. <\/li>\n<p><\/p>\n<p><strong> Free Trade Agreement (FTA) <\/strong><\/p>\n<li class=\"ms-5\"> FTAs are arrangements between two or more countries or trading blocs that primarily agree to reduce or eliminate customs tariff and non tariff barriers on substantial trade between them. <\/li>\n<li class=\"ms-5\"> They can cover both goods and services. It also addresses issues such as investment, mobility of professionals, and regulatory cooperation. <\/li>\n<li class=\"ms-5\"> India uses different terms to denote the scope and depth of trade agreements. <\/li>\n<p><a href=\" https:\/\/www.nextias.com\/ca\/current-affairs\/27-02-2026\/india-global-trade-ftas \" class=\"btn btn-primary btn-sm float-end\">Read More<\/a><\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-67762","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/67762","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=67762"}],"version-history":[{"count":3,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/67762\/revisions"}],"predecessor-version":[{"id":67766,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/67762\/revisions\/67766"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=67762"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=67762"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=67762"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}