Why is it in News?
→ India accelerated negotiations for multiple Free Trade Agreements.
→ FTAs are increasingly used as geopolitical and strategic tools.
Important Points
- India pursuing FTAs with New Zealand, Russia, Oman, US, EU, Canada.
- Shift from pure trade liberalisation to strategic alignment.
- FTAs used for supply-chain security.
- Past FTAs delivered modest export gains.
- Trade deficits widened in several FTA partner countries.
- Imports from ASEAN rose by 234.4% between FY2009–FY2023.
- Exports to ASEAN increased only by 130.4% in same period.
- India’s FTA utilisation rate is about 25%.
- Developed countries’ utilisation rate is 70–80%.
- Non-tariff barriers limit market access for Indian exporters.