India Actively Pursuing FTAs To Boost Exports, Jobs And Investment: Piyush Goyal

New Delhi, Feb 4 (KNN) The government is actively pursuing bilateral and multilateral Free Trade Agreements (FTAs) to enhance market access, boost exports, promote investment and create employment opportunities, Union Minister of Commerce and Industry Piyush Goyal informed in a written reply to the Lok Sabha.

Objective of Free Trade Agreements

The Minister said that India’s FTA strategy is aimed at increasing trade in goods and services, addressing non-tariff barriers, strengthening economic and technical cooperation, and integrating Indian businesses into global value chains.

The agreements are designed to build on trade complementarities to enhance export potential while creating opportunities for industry, farmers and workers.

FTAs Concluded in Recent Years

During the current financial year, India has concluded FTAs with the United Kingdom, Oman, New Zealand and the European Union. In recent years, agreements have also been signed with Mauritius (CECPA), the UAE (CEPA), Australia (ECTA) and the European Free Trade Association (EFTA) comprising Iceland, Liechtenstein, Norway and Switzerland.

The Minister said that the government undertakes extensive consultations with stakeholders, including industry representatives, at all stages of FTA negotiations, pre-negotiation, during negotiations and post-conclusion implementation.

Sector-specific consultations are also held to identify high-growth export areas such as pharmaceuticals, electronics, textiles, marine products and engineering goods.

Safeguards for Domestic Industry and Sensitive Sectors

To protect domestic industry and sensitive sectors such as agriculture, dairy and MSMEs, FTAs include sensitive or exclusion lists where limited or no tariff concessions are provided. The agreements also allow for trade remedial measures, including anti-dumping and safeguard actions, in case of import surges that cause injury to domestic producers.

Measures to Improve FTA Utilisation

The government is working with industry associations, Export Promotion Councils, academic institutions and Indian Missions abroad to improve awareness and utilisation of FTA benefits. Regular outreach programmes, including MSME cluster-level sessions, are conducted to explain tariff concessions, rules of origin and compliance procedures.

Supporting initiatives include the Export Promotion Mission (2025–31), participation in international trade fairs, calibrated export measures notified by DGFT, rollout of Bharat Trade Net, and grassroots initiatives such as Districts as Export Hubs and E-Commerce Export Hubs to help MSMEs and artisans access global markets.

Additional support measures include enhanced ECGC export credit cover, establishment of 65 Export Facilitation Centres, postal export reforms, GST relaxations for e-commerce exports, district-level export action plans, and financial assistance by APEDA for registered exporters.

Impact of Major FTAs

Highlighting outcomes, the Minister said that the India–EFTA Trade and Economic Partnership Agreement (TEPA) provides preferential access to 99.6 per cent of India’s exports and includes a commitment of USD 100 billion in FDI over 15 years.

The India–UK CETA secures duty-free access for 99 per cent of Indian exports, while the India–Oman CEPA strengthens trade ties with the Gulf region.

Recently concluded negotiations with New Zealand offer duty-free access for all Indian exports along with a commitment of USD 20 billion in investments over the next 15 years.

India–EU FTA and Global Integration

The Minister said the India–EU FTA marks a major milestone, covering economies that together account for nearly 25 percent of global GDP. The agreement provides preferential market access for over 99 percent of Indian exports, safeguards sensitive agricultural and dairy products, and offers significant growth opportunities for MSMEs, women, artisans, youth and professionals.

The FTA is expected to benefit labour-intensive sectors such as textiles, leather, marine products, gems and jewellery, while also offering a stable and conducive regime for Indian service providers, including traditional medicine and AYUSH practitioners, in EU markets.

(KNN Bureau)