Trade Winds of Change:

analysing INDIA’s shifting

free trade strategies

efforts by:
Radhika Singh 2022/883
Palak Gadroo 2022/1551
Nancy Yadav 2022/693
Abstract
India's Free Trade Agreement (FTA) journey is a testament to its evolving economic diplomacy and
strategic alliances. From historic agreements with East Asian nations like Singapore and Korea to
comprehensive engagements with Western counterparts such as Japan, the Gulf Cooperation Council
(GCC), and ongoing negotiations with the EU, India's FTA strategy reflects a multifaceted approach.
These agreements span sectors ranging from technology to agriculture, fostering innovation and market
diversification. India's proactive stance underscores its commitment to leveraging global partnerships for
inclusive growth, sustainable development, and navigating the complexities of the contemporary trade
landscape. This abstract encapsulates India's dynamic FTA trajectory, showcasing a proactive and
balanced approach towards fostering mutually beneficial economic ties with partners across the globe.

Introduction
India's engagement in Free Trade Agreements (FTAs) marks a dynamic journey woven with historical
significance and strategic foresight. The evolution of India's FTA landscape mirrors its growing
integration into the global economy and the quest for enhanced trade relations across regions.
Beginning with India's FTA history, pivotal milestones include agreements like the India-Singapore
Comprehensive Economic Cooperation Agreement (CECA) and the India-Korea Comprehensive
Economic Partnership Agreement (CEPA). These agreements laid the groundwork for India's deeper
economic ties with East Asian nations, fostering mutually beneficial trade relationships and investment
flows.
On the western front, India's FTAs with countries such as Japan, the Gulf Cooperation Council (GCC),
and the recent India-EU Trade and Investment Agreement negotiations signify a proactive approach
towards bolstering economic partnerships with the West. These agreements encompass diverse sectors,
from technology to agriculture, opening avenues for expanded market access and collaborative ventures.
India's approach to FTAs reflects a balanced strategy focused on leveraging comparative advantages,
fostering innovation, and ensuring equitable outcomes for stakeholders. Embracing a multipronged
approach, India seeks to harness the potential of FTAs to drive inclusive growth, promote sustainable
development, and navigate the complexities of the global trade landscape.
Literature Review
The literature on trade agreements (TAs) spans decades and offers insights into their complex impacts
on trade patterns, economic welfare, and global integration. Traditionally, economists have examined
whether TAs lead to trade creation, where member countries exploit their comparative advantages, or
trade diversion, where lower-cost imports from non-members are replaced with higher-cost intra-bloc
imports.
Early seminal works by Viner, Meade, and others laid the theoretical groundwork for understanding
TAs' welfare effects. Viner's distinction between trade creation and diversion set the stage for
subsequent analyses, highlighting the importance of assessing the net welfare impact of TAs. These
foundational studies underscored that the welfare outcomes of TAs are not universally positive and
depend on various factors, including the structure of the agreement and the economic characteristics of
member countries.
Empirical analyses of TAs have utilized diverse methodologies, including ex-post evaluations with
historical data and ex-ante predictions based on theoretical models. Tinbergen's pioneering use of the
gravity model in the 1960s marked a significant advancement in understanding TAs' impact on trade
flows. While Tinbergen's study on the British Commonwealth found modest effects on trade,
subsequent research by scholars like Aitken, Bergstrand, and Frankel yielded mixed results, with some
studies indicating significant impacts on intra-bloc trade while others found insignificant effects.
In the case of India, studies have assessed the impact of TAs using various empirical approaches. Ex-
ante analyses of agreements like the India-ASEAN FTA have predicted mixed outcomes, with
projections of increased allocative efficiency but worsening terms of trade. Ex-post evaluations have
shown substantial increases in India's exports to partner countries post-FTA, but the impact on intra-
bloc trade remains limited.
Studies on India's FTAs with countries like Korea and Sri Lanka have revealed sector-specific gains but
also highlighted challenges such as underutilization and administrative costs associated with rules of
origin. For example, while the India-Korea FTA led to increased utilization, overall exports to Korea
remained stagnant, indicating barriers beyond tariff reductions.
Overall, the literature underscores the nuanced nature of TAs' effects on trade and welfare. While TAs
have the potential to stimulate economic growth and integration, their impact varies depending on
factors such as agreement design, country characteristics, and broader economic conditions. Moving
forward, further research is needed to better understand the long-term implications of TAs and develop
strategies to maximize their benefits while addressing potential challenges.
What is a Free Trade
Agreement (FTA) ?
A free trade agreement is a pact between two or more nations to reduce barriers to imports and
exports among them. Under a free trade policy, goods and services can be bought and sold across
international borders with little or no government tariffs, quotas, subsidies, or prohibitions to
inhibit their exchange.
The concept of free trade is the opposite of trade protectionism or economic isolationism. In the
modern world, free trade policy is often implemented by means of a formal and mutual agreement
of the nations involved. However, a free-trade policy may simply be the absence of any trade
restrictions.
A government doesn't need to take specific action to promote free trade. This hands-off stance is
referred to as “laissez-faire trade” or trade liberalization.Governments with free-trade policies or
agreements in place do not necessarily abandon all control of imports and exports or eliminate all
protectionist policies. In modern international trade, few free trade agreements (FTAs) result in
completely free trade.
In principle, free trade on the international level is no different from trade between neighbors,
towns, or states. However, it allows businesses in each country to focus on producing and selling the
goods that best use their resources while other businesses import goods that are scarce or
unavailable domestically. That mix of local production and foreign trade allows economies to
experience faster growth while better meeting the needs of its consumers.
The benefits of Free Trade Agreements (FTAs) include:
1. Tariff Reduction
2. Access to New Markets
3. Trade Risk Diversification
4. Innovation and Competition
5. Technology Transfer and Integration
6. Intellectual Property Protection
7. Improved Product Standards & variety
8. Fair Treatment for Investors
India's engagement in free trade agreements (FTAs) has experienced a notable evolution over the years,
reflecting the country's dynamic economic landscape and strategic priorities in the global trade arena.
From a cautious approach focused on bilateral agreements to a more proactive and comprehensive
strategy encompassing multiple regional and multilateral arrangements, India's trajectory in FTAs can
be reflected majorly through the following timeline:

1975- Bangkok Agreement with Bangladesh, Sri Lanka and South Korea ( evolved into APTA in 2005
with China’s inclusion)
1998- India Sri Lanka Free Trade Agreement (ISFTA)
2003- India Afghanistan Preferential Trade Agreement & India Thailand Free Trade Agreement &
ASEAN- India Free Trade Agreement (AIFTA)
2005- India Singapore Comprehensive Economic Cooperation Agreement
2006- India Chile Preferential Trade Agreement & South Asian Free Trade Area (SAFTA)
2009- India Korea Comprehensive Economic Partnership Agreement (IKCEPA)
2011- India Malaysia Comprehensive Economic Cooperation Agreement (IMCECA) & Japan India
Comprehensive Economic Partnership Agreement (JICEPA)
2021- India Mauritius Comprehensive Economic Cooperation and Partnership Agreement
2022- Australia–India Comprehensive Economic Cooperation Agreement (AI-CECA) & India UAE
Comprehensive Economic Partnership Agreement
2023 onwards- India is simultaneously negotiating agreements with multiple countries and trade blocs.
Major bilateral agreements being India Israel FTA, India Canada CEPA, India Peru FTA, India Chile
PTA, India New Zealand FTA, India UK FTA and some major multilateral agreements being India
EU Broad Based Trade and Investment Agreement (BTIA).
2024- India- European Free Trade Association signed a Trade and Economic Partnership agreement
(TEPA)

This timeline illustrates India's evolving trajectory in its pursuit of FTAs, from initially focusing on East
Asian countries under the Look East Policy to gradually exploring agreements with nations in the western
region, including the Middle East and Europe.

India's prioritization of signing Free Trade Agreements (FTAs) with eastern countries over western
nations stems from several reasons:
1. Geographical Proximity: India's proximity to East and Southeast Asia fosters regional integration
and economic cooperation.
2. Trade Potential: East Asia offers booming economies and emerging markets, providing India with
new trade avenues and access to larger consumer bases.
3. Global Value Chains: Integration into East Asian value chains, especially in manufacturing and
technology, enhances India's competitiveness and attracts foreign investment.
4. Strategic Importance: Strengthening ties in East Asia bolsters India's geopolitical standing, aids in
balancing China's influence, and supports its maritime interests in the Indo-Pacific.
5. Gradual Approach: India's incremental strategy starts with high-potential regions before expanding
to others, leveraging these agreements for future negotiations with western nations.
While now, India's pursuit of Free Trade Agreements (FTAs) with western countries is driven
by several strategic objectives:
1. Diversification: India aims to diversify trade partnerships beyond East and Southeast Asia to
reduce dependence and mitigate risks.
2. Access: FTAs with the West offer access to lucrative markets, boosting exports and economic
growth.
3. Competitiveness: Lowering tariffs enhances India's competitiveness globally, attracting
investment.
4. Post-Brexit Opportunities: India eyes separate FTAs, like with the UK, post-Brexit for
mutual benefits.
5. Economic Recovery: Amid COVID-19, expanding trade with the West aids India's recovery
efforts, stimulating growth and job creation.
Overall, these align with India's economic and strategic aims. Hence, this geographical
pattern(From EAST towards WEST) seems to be catalystic for India’s growth.
Digging deeper
Analysing some of these major trade agreements, their terms, trade balances, goods and the benefits
reaped.

(i)AIFTA
The ASEAN-India Trade in Services Agreement was signed in November 2014. It contains
provisions on transparency, domestic regulations, recognition, market access, national treatment
and dispute settlement. The ASEAN-India Investment Agreement was also signed in November
2014. The Investment Agreement stipulates protection of investment to ensure fair and equitable
treatment for investors, non-discriminatory treatment in expropriation or nationalation as well as
fair compensation. Economic co-operation activities under the AIFTA are now being undertaken on
agriculture, fisheries and forestry; services; mining and energy; science and technology; transport and
infrastructure ;manufacturing; human resource development; and other sectors such as handicrafts,
small and medium enterprises (SMEs), competition policy, Mekong Basin Development, intellectual
property rights and government procurement.

(ii)INDIA- AUSTRALIA
On 2 April 2022, Australia signed a trade agreement with India, the Australia-India Economic
Cooperation and Trade Agreement (AI-ECTA), in a move that can only be dubbed as historic. The
AI-ECTA is an interim agreement intended to serve as a stepping-stone towards a full Australia-
India Comprehensive Economic Cooperation Agreement (CECA) which is on track to be signed
later this year.
Under the deal, tariffs will be removed on more than 85% of Australian goods exports to India
(worth over USD12.6 billion a year) rising to over 91% over the next 10 years.
Key Australian goods such as sheep meat, wool, metallic ores such as manganese, copper and
zirconium, coal, alumina, titanium dioxide, certain critical minerals and certain non-ferrous metals
will enter India duty-free as soon as the agreement comes into force. India will also crystallise
existing duty-free entry for Australian barley, oats, hides and skins, and liquified natural gas.
Certain Australian goods will also see the elimination or reduction of tariffs over three, five, seven or
ten years. These include infant formula, wine, seafood, lentils and certain fruits, nuts, vegetables,
oilseeds and oils, food preparation items, petroleum oils, non-ferrous metals, wood and paper
products, pharmaceutical products and medical devices. The elimination or reduction in tariffs is
expected to create new opportunities for both countries, including where trade was previously
uncertain or not economically feasible due to high tariffs.
AI-ECTA will also see the development of systems for the mutual recognition of professional
qualifications, licensing, and registration procedures between the professional services bodies of both
countries
Market access for single-brand retailing and franchising, as well as commitments regarding wholesale
distribution services will be provided by India, and Australian internet services businesses will be given
an increased foreign equity limit of 74% for commercial presence in India.
As part of a side agreement to the AI-ECTA, Australia has committed to amending its domestic tax
law to prevent Indian-based companies from being taxed on net profits linked to payments from its
Australian clients. This will hopefully bring an end to a decade-long tax dispute between the two
countries.
India is Australia’s seventh largest trading partner with bilateral trade in goods and services having
grown in value from USD13.6 billion in 2007 to USD24.3 billion in 2020. With the AI-ECTA and
expected conclusion of the CECA, this number is only set to rise with the creation of jobs,
strengthening of businesses and increased cooperation across key sectors in both countries.

(iii)INDIA- SRI LANKA

The Indo-Sri Lanka Free Trade Agreement (ISFTA), which was signed on 28th December 1998 and
entered into force with effect from 1st March 2000, provides duty free concessions to a wide range of
products traded between the two countries.

Sri Lanka’s export to India increased from US $ 173 million during January to May in 2010 to US $
219 million during the corresponding period of 2011 registering a 26.6% growth. This increase was
mainly due to a significant increase in exports such as insulated wiring sets and cables, bottle coolers,
petroleum products, cocoa products, technically specified natural rubber, marble, furniture, MDF
boards, apparel & clothing accessories, glass products, rubber gloves, nutmeg, mace etc. during January
to May in 2011 when compare to the same period in 2010. However, exports of certain products such as
cloves, pepper, natural rubber in form of smoked sheets, copper wires, animal feed, refined copper, new
pneumatic tyres etc. have recorded decrease during January to May in 2011 compared to the same
period in 2010.
(iv)INDIA- REPULIC OF KOREA
ROK and India signed a Comprehensive Economic Partnership Agreement (CEPA) in Seoul on 7th
August , 2009, heralding a new era of greater economic exchanges, between the two countries.
Negotiated over twelve rounds, during more than three years, CEPA came into effect on 1st January
2010.
It commits both countries to lower or eliminate import tariffs on a wide range of goods, over the
next 10 years and expand opportunities for investments and exchanging services. ROK is phasing
out or reducing tariffs on 90 percent of Indian goods over the next decade, while India will do so on
85 percent of Korean goods.
South Korean business was quick to recognize the great potential of the Indian market comprising
of 1.2 billion people and a 300 million strong middle class, endowed with excellent buying power.
Indian demand for a wide range of goods and services, is expanding rapidly consequent to the steady
GDP growth of around 8% during the preceding five years. India’s GDP is poised to touch $ 2
trillion by the end of the year. It is expected that India would become the 3rd biggest economy in the
world by 2030.
India will also benefit from CEPA, which allows temporary movement to ROK, of professional
workers such as computer programmers, software engineers and English language teachers etc. 163
such professions would be allowed access to Korean services market.

Trade Balance between India and South Korea (2007 - 2017, in billions USD)
(vi)INDIA- UAE
The historic India-United Arab Emirates (UAE) CEPA, which was signed between the two
nations on 18 February 2022, officially came into force on 1 May 2022. CEPA is expected to
increase the total value of bilateral trade in goods to over US$100 billion and trade in services to
over US$15 billion within five years. The CEPA includes a total of 11 service sectors and over 100
sub-sectors, the key sectors are business services, telecommunication services, construction and
related services, educational services, environmental services, financial and insurance services,
health-related and social services, tourism and travel-related services, recreational, Cultural and
Sporting services and, transport services.
The India-UAE CEPA is likely to benefit about US$ 26 billion worth of Indian products that are
subjected to 5% import duty by the UAE. Overall UAE is offering elimination of duties on 97 %
of its tariff lines corresponding to 99% of imports from India. 90% of India’s total exports to the
UAE in value terms would become duty-free immediately upon entry into force of the CEPA.
The UAE’s immediate zero-duty market access offer to India covers all labor-intensive sectors
such as gems and jewelry, textiles, leather, footwear, sports goods, plastics, furniture, agricultural
and wood products, engineering products, pharmaceuticals, medical devices, and Automobiles.
UAE can also become a hub for sourcing India’s capital goods and intermediates for further
value-added exports to other destinations in Africa and Europe.
Also, for the first time in any Trade Agreement, a separate Annex on Pharmaceuticals has been
incorporated to facilitate access to Indian pharmaceutical products, especially automatic
registration and marketing authorization in 90 days for products approved by developed country
regulators, namely the United States (USFDA), the United Kingdom (UKMHRA), the European
Union (EMA), and Japan (PMDA).
How has this journey been for India?
During the past one year, CEPA has made a significant impact on India’s Bilateral Trade with the
UAE and particularly India’s Exports to the UAE (Oil and Non-Oil). The Bilateral Trade between
India and the UAE has touched historic highs during FY 2022-23. Trade has increased from US$
72.9 billion (Apr 21-Mar 2022) to US$ 84.5 billion (Apr 22-Mar 2023) registering a year-on-year
increase of 16%. During the CEPA Implementation period (from May 22 to Mar 23), bilateral
trade increased from US$ 67.5 billion (May 21-Mar 2022) to US$ 76.9 billion (May 22-Mar 2023)
– an annual increase of 14%.
Exports from India to the UAE have also registered a multiyear high. During April-March period,
Indian exports to the UAE increased from US$ 28 bn to US$ 31.3 bn; an increase of around US$ 3.3
billion; or 11.8% year-on-year growth in percentage terms. During the same period, growth in
India’s global exports was 5.3%, excluding the UAE, India’s global exports grew at 4.8%.
During the CEPA Implementation period (May 22 – March 23), India’s exports to the UAE
increased from 26.2 billion (May 21 – March 22) to 28.5 billion (May 22 – March 23); an 8.5% y-o-y
growth. During the same period, India’s global exports, excluding the UAE, grew at 3.1%. India’s
Imports from the UAE have grown to USD 53.2 billion (an annual increase of 18.8%) during Apr 22
to Mar 23. Non-oil imports during the same period grew by 4.1%.
Some of the key sectors, including labour-intensive sectors, that have witnessed significant export
growth on account of the CEPA include: Mineral Fuels; Electrical Machinery (particularly
telephone equipment); Gems & Jewellery; Automobiles (Transport vehicles segment); Essential
Oils/Perfumes/Cosmetics (Beauty/Skin care products); Other Machinery; Cereals (Rice);
Coffee/Tea/Spices; Other Agri Products; and Chemical Products.

Under the India-UAE CEPA in the Goods Domain, the UAE eliminated duties on 97.4% of its
tariff lines corresponding to 99% of imports from India. India has obtained immediate duty
elimination on over 80% of its tariff lines corresponding to 90% of India’s exports in value terms.
Most of these tariff lines correspond to the labour-intensive industries/sectors such as oil seeds &
oils, beverages, cotton, fish & fish products, textiles, clothing, gems and jewellery, leather, footwear,
pharmaceuticals and many engineering products.
In the Services Domain, broader and deeper commitments have been taken across all the sectors and
modes of supply. Out of the 160 services subsectors, India has offered 100 sub-sectors to the UAE
and the UAE has offered 111 sub-sectors to India.
Given the significant increase in bilateral trade, particularly in exports of Indian goods and services,
CEPA would have had a concomitant positive impact on other key macroeconomic variables such
as GDP and Employment.

(i)SAPTA
The SAARC Preferential Trading Arrangement (SAPTA) reflected the desire of the Member States
to promote and sustain mutual trade and economic cooperation within the SAARC region through
the exchange of tariff concessions.The idea of liberalizing trade among SAARC countries was first
mooted by Sri Lanka at the sixth Summit of the South Asian Association for Regional Co-operation
(SAARC) held in Colombo in December 1991.Four rounds of negotiations were held under
SAPTA. SAPTA was envisaged primarily as the first step towards the transition to a South Asian
Free Trade Area (SAFTA) leading subsequently towards a Customs Union. Accordingly SAPTA
was superseded with the implementation of SAFTA. Product coverage was limited under SAPTA
and usage of tariff preferences under the SAPTA has been gradually decreasing.
(vii) INDIA- EFTA Close to Finalizing a Free Trade Agreement TEPA
Reports have emerged that India and the European Free Trade Association (EFTA) have come to
an understanding regarding the Trade and Economic Partnership Agreement (TEPA), which has
been under discussion since 2008.
The deal could see the small group of nations – Switzerland, Iceland, Liechtenstein, and Norway –
invest as much as US$100 billion over 15 years in exchange for India’s market access. While India
wants the EFTA members to commit to that number, European officials are more in favor of
making it a goal and not legally binding.
Status of negotiations
The EFTA nations and India have agreed to broad contours of the deal, including on patent
protection, a contentious topic in the past. They have also agreed to include a new chapter on
investment promotion. The discussions are yet to be concluded and, as such, both parties have
agreed to not make any information public.

However, multiple Indian government departments are not in agreement with demands from EFTA
nations Switzerland and Norway on provisions relating to pharmaceutical products. The foreign
pharmaceutical firms are pushing for TRIPS-plus, an informal reference to intellectual property
protection beyond the WTO’s TRIPS agreement, which India is currently compliant with. The
opposing departments – health ministry and department of pharmaceuticals – fear TRIPS-plus
clauses may restrict access to life-saving drugs and harm the local pharmaceutical industry. Other
proposed provisions include regulatory data protection (RDP), or ‘data exclusivity’ for new drugs,
that would prevent or delay regulators from using originator company data for approval of
subsequent manufacturers. Such rules would necessitate changes to India’s regulatory policies under
the Central Drugs Standard Control Organisation (CDSCO) as well as the Patents Act.
The 21st round of discussions to the EFTA TEPA was held in Delhi from January 8 to 13, 2024,
which mainly focused on areas of trade in services, rules of origin, trade facilitation, investment
promotion and cooperation, intellectual property rights, and trade and sustainable development.
India – EFTA trade
The overall amount of commerce between India and the EFTA nations has increased gradually
over the last 20 years. The total value of commercial trade between the EFTA members and India
exceeded US$6.1 billion in 2022. The biggest exports to India were pharmaceutical items (11.4
percent) and machinery (17.5 percent), while organic chemicals (27.5 percent) made up the majority
of EFTA imports. Mutual direct investment (FDI) and bilateral trade in services have also grown
significantly.
The focus of the proposed India-EFTA TEPA is on reduction of tariff on high-value goods, such as
fish from Iceland and Norway, advanced chemicals and pharmaceuticals machine equipment, and
Swiss chocolate. On its part, India is seeking to attract investments and get access for Indian goods
in EFTA markets.

EFTA Trade with India: An overview from 2022

What should India expect from
all the FTAs it signs in the near
future?
Broadly , there have been certain stumbling blocks for India’s negotiations, some of which have been listed
as :
1. India’s announcement of the Make In India or Atmanirbhar Bharat policy runs counter to free trade
without subsidies negotiations
2. India has always been protective of agricultural sector, and most FTAs leave the subject out entirely
3. Concerns about Chinese goods flooding the markets via FTAs with third countries – mean India pushes
for strong Rules of Origin clauses
4. Intellectual Property Rights is increasingly a problem as countries move towards R&D as an economic
mainstay, India is being forced to accept more international patents
5. Issues like Democratic freedoms, Human Rights issues, transnational operations are also bleeding into
negotiations like the EU, EFTA and now Canada.

India's 'Atmanirbhar Bharat' mission aims to boost exports from $300 billion in 2020 to $2 trillion by 2030,
a stark contrast to stagnant figures since 2011. This endeavor is heightened by the need to rival China's
global export dominance, which has been bolstered by initiatives like the One Belt One Road (OBOR) and
Free Trade Agreements (FTAs). However, a shift in global sentiment against Chinese dominance presents
India with an opportunity to increase its export share.
Recommendations include pursuing FTAs with major markets like the EU and the US, similar to China's
strategy, and leveraging technology sharing and raw material access. Infrastructure development is also
crucial for enhancing trade connectivity with South Asian neighbors. Despite these suggestions, India's
historical struggles with FTA negotiations raise doubts about the feasibility of achieving these goals. The
forthcoming Foreign Trade Policy, anticipated in April 2022, may shed light on the trajectory of India's
export strategy. Ultimately, balancing strategic FTA pursuits with mutually beneficial terms and
infrastructure development will be critical for India's export ambitions and competition with China.
Conclusion
India's strategy for enhancing future FTAs encompasses three key elements. Firstly, prioritizing
policy-driven trade facilitation measures, exemplified by the production-linked incentive (PLI)
scheme, which offers WTO-compliant incentives across 14 sectors, including high-tech emerging
goods like drones and electric vehicles. Integrating lower tariff barriers for these sectors into
future FTAs would broaden their scope. Additionally, addressing logistics sector improvements
and issues like inverted duty structures and including Technical Barriers to Trade (TBT) and
Sanitary and Phytosanitary (SPS) measures in FTA agreements are commendable efforts.
Secondly, there's a need to focus on services sector strengths in FTA design. Past agreements have
often neglected services due to stringent Non-Tariff Barriers (NTBs), resulting in trade
imbalances favoring countries with merchandise goods advantages. By signing new FTAs with
deeper services provisions and renegotiating existing ones for greater market access, India can
leverage its competitiveness in the services sector effectively.
Lastly, India must pivot towards manufacturing sophisticated goods over the medium term to tap
into its export potential. Shifting away from low-tech or low-skill products is crucial to avoid
incumbency disadvantages against Asia's low-cost producers. Sectors like chemicals, automotive
components, and electrical apparatus offer export potential, utilizing high or moderately high
technology with significant research and development (R&D) involvement. Leveraging India's
comparative advantage in IT services, the country can focus on frontier technologies such as
artificial intelligence, nanotechnology, and robotics. Moreover, diversification into high-quality
export-oriented automobile products can enhance India's manufacturing sector contribution.
By aligning these strategies, India can strengthen its position in future FTAs, tapping into its
diverse economic strengths and paving the way for sustained export growth.
References
The information provided in this document is authentic and has been taken from various reliable
sources. Some of these are listed below:
https://pib.gov.in/PressReleasePage.aspx?PRID=1814151
https://en.wikipedia.org/wiki/List_of_multilateral_free_trade_agreements
https://www.india-briefing.com/doing-business-guide/india/why-india/india-s-international-free-
trade-and-tax-agreements
https://commerce.gov.in/international-trade/trade-agreements/
https://www.investopedia.com/terms/f/free-trade.asp
https://www.thehindu.com/news/international/watch-trade-diplomacy-whats-the-status-of-indias-
free-trade-agreements/article67955228.ece
https://www.thehindu.com/news/national/what-do-ftas-with-european-countries-signal-
explained/article67964270.ece
https://www.thehindu.com/news/national/india-european-free-trade-association-ink-free-trade-
agreement/article67935003.ece