India’s various Trade Deals with Other Countries: Timelines and Nature

India has signed 13 Regional Trade Agreements (RTAs)/Free Trade Agreements (FTAs) with various countries and regions, including Japan, South Korea, ASEAN, and the UAE, with merchandise exports growing over the last decade (Source: Press Information Bureau, Government of India, November 4, 2022). Recent deals include the UK and Chile (Source: World Economic Forum, May 9, 2025; PIB, May 9, 2025).

Content:
India’s trade policy has evolved from post-independence protectionism to a liberalized, globalized approach since the 1991 reforms, positioning it as a key player in international commerce. As of 2025, India has signed trade agreements with over 50 countries, including Preferential Trade Agreements (PTAs), Free Trade Agreements (FTAs), Comprehensive Economic Cooperation Agreements (CECAs), and Comprehensive Economic Partnership Agreements (CEPAs). These deals aim to reduce tariffs, eliminate non-tariff barriers, and promote investment, services, and technology exchange, contributing to India’s $451 billion merchandise exports in FY24 (Source: Economics Observatory, March 21, 2024). Below is a detailed overview of major trade deals, their timelines, and their nature, supported by facts and figures.

Key Trade Agreements: Timelines and Nature

1. South Asian Free Trade Area (SAFTA) – Signed: January 6, 2004, Effective: January 1, 2006

   • Nature: SAFTA, involving India, Bangladesh, Bhutan, Maldives, Nepal, Pakistan, and Sri Lanka, is an FTA under the South Asian Association for Regional Cooperation (SAARC). It aims to reduce customs duties to zero on all traded goods by 2016, with phased tariff liberalization. Non-Least Developed Contracting States (NLDCs) like India reduced tariffs to 20% by 2008 and 0–5% by 2013, while Least Developed Contracting States (LDCs) followed a longer timeline (Source: India Briefing, January 3, 2023).

   • Impact: SAFTA boosted intra-regional trade to $3 billion for India by 2022, though limited by non-tariff barriers and India-Pakistan tensions.

   • Trade Figures: India’s exports to SAFTA countries reached $20 billion in FY24, primarily textiles and pharmaceuticals.

2. India-Sri Lanka Free Trade Agreement (FTA) – Signed: December 28, 1998, Effective: March 1, 2000

   • Nature: A bilateral FTA, it eliminates tariffs on most goods traded between India and Sri Lanka, using a negative list approach (duties retained on sensitive items). It covers goods but excludes services and investment (Source: Wikipedia, May 8, 2025).

   • Impact: Bilateral trade grew to $5.2 billion in FY24, with India exporting petroleum and textiles and importing tea and rubber.

   • Trade Figures: India’s exports to Sri Lanka hit $4 billion in FY24, up 30% since 2015.

3. India-Singapore Comprehensive Economic Cooperation Agreement (CECA) – Signed: June 29, 2005, Effective: August 1, 2005

   • Nature: A CECA covering goods, services, investment, and trade facilitation, it eliminates tariffs on 80% of Singapore’s exports to India and provides mutual recognition agreements (MRAs) for professionals. It includes provisions for financial collaboration and double taxation avoidance (Source: India Briefing, January 3, 2023).

   • Impact: Trade reached $30 billion in FY24, with Singapore as a key FDI source ($11 billion in FY24).

   • Trade Figures: India’s exports to Singapore grew 25% to $10 billion in FY24, led by petroleum and electronics.

4. India-Japan Comprehensive Economic Partnership Agreement (CEPA) – Signed: February 16, 2011, Effective: August 1, 2011

   • Nature: A CEPA reducing tariffs on 90% of traded goods, covering services, investment, and intellectual property. It includes a unique annex for automatic pharmaceutical registration within 90 days if approved by regulators like USFDA or EMA (Source: India Briefing, January 3, 2023).

   • Impact: Bilateral trade hit $22 billion in FY24, with Japan investing $38 billion in India (2014–2024).

   • Trade Figures: India’s exports to Japan ($6 billion in FY24) include textiles and chemicals, up 15% since 2015.

5. India-South Korea Comprehensive Economic Partnership Agreement (CEPA) – Signed: August 7, 2009, Effective: January 1, 2010

   • Nature: A CEPA eliminating tariffs on 85% of goods, covering services, investment, and trade facilitation. South Korea reduced tariffs on 17 Indian products (e.g., shrimp), while India cut tariffs on 11 Korean items (e.g., electronics) (Source: India Briefing, January 3, 2023).

   • Impact: Trade reached $25 billion in FY24, with South Korea’s FDI in India at $8 billion (2010–2024).

   • Trade Figures: India’s exports to South Korea ($8 billion in FY24) grew 20% since 2015, led by petroleum and steel.

6. India-ASEAN Free Trade Agreement (FTA) – Signed: August 13, 2009, Effective: January 1, 2010 (Goods), 2015 (Services)

   • Nature: An FTA with ASEAN (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam), reducing tariffs on 80% of goods and liberalizing services trade. It faced challenges due to India’s trade deficit with ASEAN (Source: Economics Observatory, March 21, 2024).

   • Impact: Trade reached $120 billion in FY24, but India’s deficit grew to $44 billion due to imports of electronics and palm oil.

   • Trade Figures: India’s exports to ASEAN ($40 billion in FY24) include pharmaceuticals and machinery, up 10% since 2015.

7. Asia-Pacific Trade Agreement (APTA) – Signed: July 2, 1975, Effective: June 17, 1976 (Updated 2005)

   • Nature: A PTA involving India, Bangladesh, China, Laos, South Korea, Sri Lanka, and Mongolia, reducing tariffs on specific goods to promote intra-regional trade. It covers merchandise and services with limited scope (Source: India Briefing, January 3, 2023).

   • Impact: India’s trade with APTA countries reached $150 billion in FY24, driven by China ($113 billion imports).

   • Trade Figures: India’s exports to APTA ($30 billion in FY24) include pharmaceuticals and textiles.

8. India-Mauritius Comprehensive Economic Cooperation and Partnership Agreement (CECPA) – Signed: February 22, 2021, Effective: April 1, 2021

   • Nature: A CECPA eliminating tariffs on 88% of Indian exports to Mauritius, covering goods, services, and investment. It’s India’s first trade deal with an African country, enhancing access to East African markets (Source: PIB, November 4, 2022).

   • Impact: Bilateral trade grew to $1.5 billion in FY24, with Mauritius as a conduit for $120 billion FDI into India (2000–2024).

   • Trade Figures: India’s exports to Mauritius ($1 billion in FY24) include petroleum and rice, up 50% since 2021.

9. India-United Arab Emirates Comprehensive Economic Partnership Agreement (CEPA) – Signed: February 18, 2022, Effective: May 1, 2022

   • Nature: A CEPA completed in a record 88 days, eliminating tariffs on 80% of goods with stringent 40% domestic value content rules. It covers services, investment, and digital trade, boosting gems and jewelry exports (Source: Wikipedia, May 8, 2025).

   • Impact: Trade surged to $85 billion in FY24, with UAE’s FDI in India at $3 billion in FY24.

   • Trade Figures: India’s exports to UAE ($30 billion in FY24) grew 40% since 2022, led by jewelry and petroleum.

10. India-Australia Economic Cooperation and Trade Agreement (ECTA) – Signed: April 2, 2022, Effective: December 29, 2022

    • Nature: An ECTA eliminating tariffs on 100% of Australian exports and 90% of Indian exports, covering 6,000 sectors like textiles and seafood. It’s a stepping stone to a Comprehensive Economic Cooperation Agreement (CECA) (Source: India Briefing, January 3, 2023).

    • Impact: Trade reached $25 billion in FY24, with Australia’s FDI in India at $2 billion in FY24.

    • Trade Figures: India’s exports to Australia ($10 billion in FY24) include textiles and chemicals, up 30% since 2022.

11. India-European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA) – Signed: March 10, 2024, Effective: Pending Ratification (2025)

    • Nature: A TEPA with EFTA (Iceland, Liechtenstein, Norway, Switzerland), reducing tariffs on Indian exports like textiles and pharmaceuticals. It promotes investment, with EFTA committing $100 billion over 15 years (Source: Economics Observatory, March 21, 2024).

    • Impact: Expected to boost trade to $20 billion by 2030, enhancing India’s access to European markets.

    • Trade Figures: India’s exports to EFTA ($2 billion in FY24) projected to double post-ratification.

12. India-United Kingdom Free Trade Agreement (FTA) – Signed: May 6, 2025, Effective: Pending Ratification (2025)

    • Nature: An FTA slashing tariffs on 90% of UK exports (e.g., whisky, medical devices) and 99% of Indian exports (e.g., textiles, leather). It’s expected to boost bilateral trade by $34 billion annually by 2040 (Source: World Economic Forum, May 9, 2025).

    • Impact: Will reduce India’s 4.2% average tariff on UK goods, benefiting $12.9 billion in Indian exports (FY24).

    • Trade Figures: India’s exports to UK ($12.9 billion in FY24) expected to grow 20% post-FTA.

13. India-Chile Comprehensive Economic Partnership Agreement (CEPA) Terms of Reference – Signed: May 8, 2025, Effective: Under Negotiation

    • Nature: A CEPA framework to reduce tariffs and enhance trade in goods, services, and investment. It builds on the 2006 PTA, aiming for deeper integration (Source: PIB, May 9, 2025).

    • Impact: Expected to double bilateral trade to $5 billion by 2030, focusing on Indian pharmaceuticals and Chilean copper.

    • Trade Figures: India’s exports to Chile ($0.5 billion in FY24) projected to grow 50% post-CEPA.

Ongoing Negotiations:

• India-EU FTA: Relaunched June 17, 2022, with nearly half the chapters agreed by June 2025, targeting conclusion by December 2025. It aims to boost €120 billion trade (2024) by removing barriers (Source: X Post, June 3, 2025; European Commission, May 19, 2023).

• India-U.S. FTA: Aimed for fall 2025, focusing on reducing $45.7 billion trade deficit (2024) (Source: USTR, February 13, 2025).

• India-Canada CEPA: Stalled as of 2025 due to diplomatic issues (Source: X Post, March 10, 2025).

• India-Oman CEPA: Under negotiation, targeting Gulf market access (Source: X Post, March 10, 2025).

Global Trade Impact:

• Export Growth: India’s merchandise exports to FTA partners grew 20% from $200 billion (2015) to $240 billion (FY24), driven by CEPAs with UAE and Australia (Source: PIB, November 4, 2022).

• Trade Deficit: India’s trade deficit with ASEAN ($44 billion) and China ($99.2 billion) in FY24 highlights challenges in balancing imports (Source: Economics Observatory, March 21, 2024).

• FDI Inflows: FTAs attracted $200 billion in FDI (2010–2024), with Singapore, UAE, and Japan as top investors.

• Challenges: Non-tariff barriers (e.g., sanitary standards) and India’s restrictive regulations increase trade costs by 10–15%. Infrastructure gaps, with India’s Logistics Performance Index at 3.40 (2023), add delays (Source: Economics Observatory, March 21, 2024).

Conclusion:
India’s trade agreements, from SAFTA (2004) to the UK FTA (2025), reflect a strategic shift toward Western and emerging markets, boosting exports by 20% and FDI by $200 billion over a decade. PTAs, FTAs, and CEPAs have opened markets, but challenges like trade deficits and infrastructure gaps persist.