Whither India’s FTAs?

TRADE SURPLUSES WITH US, EU COULD BE DENTED; EXPORT PROSPECTS IN EAST ASIA A SILVER LINING

- BISWAJIT DHAR Distinguished Professor, Council for Social Development, New Delhi

WITH PRESIDENT DONALD Trump indicating that the US is"pretty close" to reaching a trade deal with India and the India-European Union (EU) trade agreement seemingly in sight, India could soon be implementing 12 bilateral free trade agreements (FTAs).

This marks a complete turnaround in India's trade policies, from an FTA-sceptic before negotiations of the first of its major agreements with ASEAN (Association of Southeast Asian Nations) members were initiated in 2003, to one that is among the most active in signing bilateral trade deals. India is now either implementing an FTA with each of the G7 countries or is engaged in negotiations to conclude one. It has FTA engagements with every East Asian country, barring China, and is engaged in at least a preferential trade agreement with countries in every region, except in Africa.

The recent series of FTAs, either being implemented or nearing completion, has been significant. Since 2022, agreements have been signed with the UAE, the UK, the European Free Trade Association (EFTA), and Mauritius, and an early harvest deal was completed with Australia, with the expectation that a comprehensive deal would be signed in the near future. While negotiations are ongoing with Canada, Israel, and New Zealand, those with the two major economies, the US, and the EU have attracted most attention.