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18 September 2025
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India is poised to become one of the world's next economicpowers. In pursuit of this vision, the country has adopted a dualstrategy of strengthening domestic capabilities while activelydeepening international trade relationships. One of the key toolsemployed by India and by many nations n
India International Law
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Introduction
India is poised to become one of the world's next economicpowers. In pursuit of this vision, the country has adopted a dualstrategy of strengthening domestic capabilities while activelydeepening international trade relationships. One of the key toolsemployed by India and by many nations navigating the complexity ofglobal commerce is the use of Regional Trade Agreements (RTAs),which reduce or eliminate tariffs and other trade barriers. ForIndia, RTAs have become instrumental in establishing stable andpredictable trade partnerships amid global volatility. Notably,India ranks 10th globally in terms of RTA usage, following leaderssuch as the European Union and the United Kingdom, which have longleveraged such agreements to secure their positions in theinternational trading system.
India's increasing integration into the global economy isreflected in its active participation in a broad array of RTAs.These agreements are not merely symbolic; they yield tangibleeconomic benefits, such as reduced or zero customs duties onqualifying imports, which help Indian industries access rawmaterials at lower costs, strengthen supply chains, and improveglobal competitiveness.
What are RTAs
RTAs are either bilateral (between two countries) orplurilateral/multilateral (involving more than two countries)reciprocal trade arrangements entered into by countries acrossvarious regions. These agreements aim to reduce trade barriers andfacilitate smoother movement of goods and services, therebypromoting deeper economic cooperation. RTAs play a crucial role inbridging the gap between developed and developing economies. Fordeveloping countries, they offer opportunities to lower tradecosts, enhance exports, and accelerate economic growth. By grantingpreferential treatment to signatory countries, RTAs promote mutualbenefit through reduced tariffs, improved market access, andinvestment-friendly frameworks.
General Framework of FTAs
India till now has implemented 15 FTAs and 6 PTAs, and isnegotiating more than 20 new pacts, most notably with the UnitedKingdom and the European Union. The latest milestone is theIndia‑EFTA Trade & Economic Partnership Agreement (March2024) with Switzerland, Iceland, Norway and Liechtenstein,underscoring India's shift toward high‑standard,plurilateral deals that lower trade barriers and stimulateinvestment.
Core Provisions Shared by Most Indian FTAs
Most Indian FTAs share a core set of provisions aimed atfacilitating trade and investment among partner countries. Thesetypically include commitments on tariff elimination or reduction,allowing for preferential access to goods originating from the FTApartner. Rules of Origin (RoO) play a critical role in determiningeligibility for such preferences, ensuring that only goods withsubstantial economic connection to the partner country qualify.Further, FTAs usually provide for national treatment andmost-favoured nation treatment [MFN], customs cooperation, andtrade facilitation measures to reduce procedural delays at borders.Many agreements also include dispute settlement mechanisms,investment protection clauses, and provisions for sanitary andphytosanitary [SPS] standards and technical barriers to trade[TBT]. Increasingly, India's newer FTAs incorporate chapters onservices trade, intellectual property, e-commerce, and sustainabledevelopment, reflecting the evolving priorities of modern tradepolicy. Recently, The India-UK CETA has been signed on 24 July 2025and negotiations were finalised on 6 May 2025 after over threeyears and fifteen rounds of talk.
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