List of Free Trade Agreements (FTA) in India | All you need to know

India – Bhutan Agreement on Trade, Commerce and Transit 

Date of Signing – 17.01.1972 (revised on 28.07.2006) 

Date of Implementation – 29.07.2006 

Description – The India-Bhutan Agreement on Trade, Commerce and Transit – which was first signed in 1972 and revised most recently for the fifth time in 2016 – establishes a free trade regime between the two countries. Both sides have signed the amended Treaty of Trade which comes into force on 27.10.2009. such agreements generally aim to bring about several benefits for both nations. The benefits often include:

Economic Growth: Trade agreements facilitate the exchange of goods and services between countries, promoting economic growth.

Market Access: The agreement likely provides both countries with enhanced market access.

Diversification of Trade: By formalizing and streamlining trade relations, the agreement can contribute to the diversification of trade between the two countries. This leads to a broader range of goods and services being exchanged.

Transit Facilities: The transit component of the agreement allows Bhutan to use Indian territory for transit trade with third countries. This can reduce transportation costs and improve the efficiency of Bhutanese exports and imports.

Revised Indo-Nepal Treaty of Trade

Date of Signing – 06.12.1991 (Revised on 27.10.2009) (The present Treaty is valid till 26.10.2016)

Date of Implementation – 27.10.2009

Description – The bilateral trade between India and Nepal is regulated by the Treaty of Trade. The current Treaty has been in force for a period of Seven years with effect from 27.10.2009.

India- Sri Lanka FTA (ISLFTA)

Date of Signing – 28.12.1998

Date of Implementation – 01.03.2000

Description – Free Trade Agreement (FTA) between India and Sri Lanka was signed on 20.12.1998 and was operationalised in March, 2000 following notification of required Customs tariff concessions by Government of Sri Lanka and India. This agreement aimed to promote trade and economic cooperation between the two countries. The benefits of such FTAs typically include:

Tariff Reduction: FTAs often involve the reduction or elimination of tariffs on a wide range of goods traded between the two countries.

Trade in Services: In addition to goods, FTAs often cover trade in services, facilitating collaboration in sectors such as telecommunications, finance, and information technology.

Investment Promotion: FTAs may include provisions to protect and promote cross-border investments. This can encourage businesses to invest in each other's countries, leading to increased economic cooperation.

Job Creation: As economic activity increases due to expanded trade, there is potential for job creation in both countries.

Agreement on South Asian Free Trade Area (SAFTA) (India, Pakistan, Nepal, Sri Lanka, Bangladesh, Bhutan Maldives and Afghanistan)

Date of Signing – 04.01. 2004

Date of Implementation – 01.01.2006

Description – Afghanistan became Eighth Member of SAARC from April, 2007 and the provisions of Trade Liberalization Programme (TLP) are applicable to Afghanistan w.e.f. 07.08.2011). SAFTA aims to promote regional economic integration and facilitate the free flow of goods among South Asian nations. The benefits of the Agreement on South Asian Free Trade Area include: 

Tariff Reduction or Elimination: SAFTA aims to progressively reduce or eliminate tariffs on a wide range of goods traded among member countries.

Economic Growth: By enhancing trade and economic cooperation, SAFTA contributes to overall economic growth in the region. Increased economic activity can lead to job creation and improved living standards.

Market Access: Member countries gain improved access to each other's markets, promoting increased trade and economic cooperation. This is particularly significant given the geographical proximity of the South Asian nations.

India – Thailand FTA – Early Harvest Scheme (EHS)

Date of Signing – 9.10.2003

Date of Implementation – 01.09.2004

Description – India and Thailand have signed protocol to implement Early Harvest Scheme under India- Thailand Free Trade Agreement on 01.09.2004. The India-Thailand FTA was signed in 2003, and the Early Harvest Scheme was a component designed to provide immediate benefits in certain sectors while the comprehensive agreement was being negotiated. Here are some key points about the India-Thailand FTA and the Early Harvest Scheme:

Bilateral Trade Relations: The India-Thailand FTA is part of broader efforts to strengthen economic ties between the two countries.

Tariff Reductions: The EHS typically focused on reducing tariffs on certain identified goods, allowing for quicker market access and increased trade in those sectors. This could include items such as agricultural products, textiles, and other goods of mutual interest.

India – Singapore Comprehensive Economic Cooperation Agreement (CECA)

Date of Signing – 29.06.2005

Date of Implementation – 01.08.2005

Description – India-Singapore CECA was the first comprehensive FTA India signed with any country. It was signed in 2005 with the aim of enhancing economic ties and cooperation between the two nations. Here are some of the potential benefits associated with the India-Singapore CECA:

Tariff Reductions and Elimination: CECA typically involves the reduction or elimination of tariffs on a wide range of goods traded between India and Singapore.

Market Access: The agreement provides businesses from both countries with improved access to each other's markets, fostering increased trade and economic cooperation.

Liberalization of Trade in Goods and Services: CECA aims to liberalize trade in both goods and services, promoting a more open and competitive economic environment.

Diversification of Trade: CECA encourages the diversification of trade portfolios between the two countries, leading to a broader range of goods and services being exchanged.

India – South Korea Comprehensive Economic Partnership Agreement (CEPA)

Date of Signing – 07.08. 2009

Date of Implementation – 01.01.2010

Description – The India-South Korea Comprehensive Economic Partnership Agreement (CEPA) is a bilateral trade agreement between India and South Korea. Signed in 2009 and implemented in 2010, CEPA aims to enhance economic cooperation and promote trade and investment between the two nations. Here are some of the potential benefits associated with the India-South Korea CEPA:

Enhanced Bilateral Ties: Successful implementation of the agreement strengthens diplomatic and economic ties between India and South Korea.

Technology Transfer and Collaboration: The agreement may promote collaboration in technology transfer, research and development, and innovation, contributing to the development of industries in both India and South Korea.

Facilitation of Business and Investments: The agreement may include provisions to facilitate business activities and cross-border investments, making it easier for companies from both countries to engage in economic activities.

India – ASEAN Trade in Goods Agreement (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam)

Date of Signing – 13.08.2009

Date of Implementation – 

1st January 2010 in respect of India and Malaysia, Singapore, Thailand. 

1st June 2010 in respect of India and Vietnam. 

1st September 2010 in respect of India and Myanmar. 

1st October 2010 in respect of India and Indonesia. 

1st November in respect of India and Brunei. 

24 January 2011 in respect of India and Laos. 

1st June 2011 in respect of India and the Philippines. 

1st August, 2011 in respect of India and Cambodia.

Description – The India-ASEAN Trade in Goods Agreement is a comprehensive trade agreement that aims to enhance economic cooperation and promote trade in goods between India and the ASEAN member countries. Here are some potential benefits associated with this agreement:

Tariff Reduction and Elimination: Reduced or eliminated tariffs on goods enhance market access, making products more affordable and competitive in both India and ASEAN markets.

Customs Procedures: Streamlined customs procedures and reduced non-tariff barriers simplify and expedite the movement of goods across borders.

Specialization: Countries may specialize in producing certain goods, leading to increased efficiency and competitiveness.

Support for SMEs: Provisions supporting small and medium-sized enterprises (SMEs) help them participate more actively in international trade.

India – Japan Comprehensive Economic Partnership Agreement

Date of Signing – 16.02.2011

Date of Implementation – 01.08.2011

Description – The India-Japan Comprehensive Economic Partnership Agreement (CEPA) is a bilateral trade and economic agreement between India and Japan. The agreement, which came into effect in August 2011, aims to enhance economic cooperation and promote trade and investment between the two nations. Here are some of the potential benefits associated with the India-Japan CEPA:

Tariff Reductions for Automobiles: CEPA includes provisions for reducing tariffs on automobiles and related components, benefiting the automotive industries in both countries.

Liberalization of Financial Services: CEPA could involve the liberalization of financial services, allowing for increased collaboration in banking, insurance, and other financial sectors.

Strong IPR Provisions: The agreement likely includes robust provisions for the protection of intellectual property rights, fostering innovation and creativity.

Facilitation of Tourism: The agreement may include provisions to promote tourism, encouraging travel and cultural exchanges between India and Japan.

India – Malaysia Comprehensive Economic Cooperation Agreement

Date of Signing – 18.02.2011

Date of Implementation – 01.07. 2011

Description – Under the CECA, India and Malaysia have offered commitments over and above the commitments offered by them under ASEAN -India Trade in Goods Agreement. Key items on which Malaysia has offered market access to India are basmati rice, mangoes, eggs, trucks, motorcycles and cotton garments which are all items of considerable export interest to India. The agreement aims to strengthen economic ties and promote cooperation in various sectors. Here are some potential benefits associated:

Reduced Trade Barriers: IMCECA typically involves the reduction or elimination of tariffs on a wide range of goods, making products more competitive and encouraging increased trade.

Services Sector Collaboration: The agreement may cover trade in services, facilitating collaboration in sectors such as finance, telecommunications, information technology, and professional services.

Simplified Customs Procedures: Measures to simplify customs procedures and reduce non-tariff barriers are likely, streamlining trade processes and making them more efficient.

Encouraging Technology Transfer: The agreement may promote collaboration in technology transfer, research and development, and innovation, contributing to the development of industries.

India – Mauritius Comprehensive Economic Cooperation and Partnership Agreement (CECPA)

Date of Signing – 22.02.2021

Date of Implementation – 01.04.2021

Description – Under the CECPA, India and Mauritius provide for an institutional mechanism to encourage and improve trade between the two countries and the bilateral economic relations between India and Mauritius have been historically strong, and the two countries have engaged in various agreements and collaborations. Some benefits include:

Simplified Customs Procedures: Measures to simplify customs procedures and reduce non-tariff barriers can streamline trade processes.

Trade in Services: It may also cover trade in services, facilitating collaboration in sectors such as finance, telecommunications, and professional services.

SME Support: Provisions supporting the participation of SMEs in international trade can benefit smaller businesses.

India – UAE Comprehensive Economic Partnership Agreement (CEPA)

Date of Signing – 28.03.2022

Date of Implementation – 01.05.2022

Description – The CEPA between India and the UAE facilitates trade between both countries by providing immediate and progressive duty reductions on imported goods and transparency in customs procedures for preferential treatment of imported goods. Some benefits include:

Strategic Partnership: CEPA signifies a strategic commitment to deepen economic ties between countries, fostering long-term cooperation.

Job Opportunities: Increased economic activities, trade, and investment can lead to job creation and overall economic growth.

Improved Competitiveness: Tariff reductions, elimination of trade barriers, and streamlined customs procedures contribute to enhanced competitiveness for businesses.

India- Australia Economic Cooperation and Trade Agreement (ECTA)

Date of Signing – 02.04.2022

Date of Implementation – 29.12.2022

Description – The India Australia ECTA provides an institutional mechanism to encourage and improve trade between the two countries. It covers almost all the tariff lines dealt by India and Australia. Some benefits of ECTA include:

Adoption of E-Governance: Adoption of modern customs procedures through e-governance initiatives and reducing paperwork. 

Encouraging Technology Transfer: Collaboration in technology transfer, research and development, and innovation contributing to the development of industries.

Promotion of Tourism: It encourages tourism through initiatives that facilitate travel and cultural exchanges.

Promotion of Sustainable Practices: Encouragement of sustainable practices and environmental considerations in trade and business.