20-Jul-2022: India has signed 13 Regional Trade Agreements (RTAs)/Free Trade Agreements (FTAs) with various countries/regions

India has signed 13 Regional Trade Agreements (RTAs)/Free Trade Agreements (FTAs) with various countries/regions namely, Japan, South Korea, countries of ASEAN region and countries of South Asian Association for Regional Cooperation (SAARC)Mauritius, United Arab Emirates, Australia. India’s merchandise exports to all these countries/regions have registered a growth in last ten years.

The following table gives country/region wise merchandise export details: 

India’s exports - RTA Partner Countries/Region wise

Values in US$ billion

Source: Directorate General of Commercial Intelligence and Statistics (DGCI&S) 

In addition, India has also signed 6 Preferential Trade Agreements (PTAs) including Asia Pacific Trade Agreement (APTA).

All of India’s RTAs, as listed in the table above, have exit clauses.

Article 32 of Asia Pacific Trade Agreement (APTA) mentions that “Any Participating State may withdraw from this Agreement, such withdrawal to take effect six months following the day on which written notice of the same is served to the Participating States through the Executive Secretary of ESCAP. The rights and obligations of a Participating State which has withdrawn from this Agreement shall cease to apply as of that date”.

15-Dec-2021: Regional Trade Agreements

India is actively negotiating Regional Trade Agreements (RTAs)/Free Trade Agreements (FTAs) with the following countries/regions :

India has signed 11 RTAs/FTAs with various countries/regions namely, Japan, South Korea, Mauritius, countries of ASEAN region and countries of South Asian Association for Regional Cooperation. India’s merchandise exports to these countries/regions have registered a growth of 20.75% in the last five years. As regards India-Mauritius Comprehensive Economic Cooperation and Partnership Agreement (CECPA), as this has been implemented w.e.f. 01-04-2021, it is too early to calculate quantifiable benefits. The following table gives country/region wise merchandise export details:

RTA partner countries/Region wise India’s exports

Values in US$ billion

As per the FDI data maintained by the Department for Promotion of Industry and Internal Trade (DPIIT), the cumulative investment received from the above countries/regions in the last 5 years (between October 2016 and September 2021) is to the tune of US$ 89.46 Billion. However, it is not possible to ascertain if investment from a country has taken place due to signing of an RTA or any other reason(s).

Review of RTAs/FTAs with South Korea, ASEAN and Singapore is under consideration.

8-Dec-2021: Regional Trade Agreements

India currently has 11 Free Trade Agreements (FTAs)/Regional Trade Agreements (RTAs) with other countries/regions. In addition, it has 6 limited coverage Preferential Trade Agreements (PTAs). The details are as under:

Free Trade Agreements (FTAs)

Preferential Trade Agreements (PTAs)

A few instances of re-routing of goods through the countries with which India has FTAs/RTAs have come to notice. To address this issue, Government has issued Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 (CAROTAR, 2020) with effect from September 21, 2020 to supplement the procedures prescribed under different FTAs. These rules also cast responsibility on the importers to conduct due diligence for ensuring that the goods meet the prescribed rules of origin. The newly introduced provisions act as deterrent against misuse of trade agreements. In addition, an FTA monitoring committee has been constituted with representation from government departments, trade and industry bodies to identify issues relating to misuse of FTA provisions and recommend action.

The value of India’s trade with FTA/RTA partner countries in the last five years is as below:

(Figures in US $ Million)

              (Source: DGCIS)