India is a country that is rapidly developing and expanding its international trade portfolio. With a population of over 1.3 billion, India is the second most populous country in the world and boasts a diverse range of industries and resources. To further advance its economic growth, India has been forging free trade agreements with other countries. In this article, we will discuss India`s free trade agreement countries and explore the potential benefits they offer.

What is a free trade agreement?

A free trade agreement (FTA) is a pact between two or more countries to eliminate or reduce trade barriers between them. These barriers may include tariffs, quotas, and other trade restrictions that limit the flow of goods and services between nations. FTAs promote international trade by removing these barriers and creating a more open and competitive marketplace.

India`s free trade agreement countries

As of 2021, India has signed free trade agreements with several countries and is in negotiations with many others. Here is a list of India`s FTA partners:

1. ASEAN (Association of Southeast Asian Nations): The India-ASEAN FTA was signed in 2009 and covers goods, services, and investment. ASEAN is comprised of ten member nations.

2. Japan: The India-Japan Comprehensive Economic Partnership Agreement (CEPA) was signed in 2011 and covers goods, services, and investment.

3. South Korea: The India-South Korea CEPA was signed in 2009 and covers goods, services, and investment.

4. Sri Lanka: The India-Sri Lanka FTA was signed in 1998 and covers goods.

5. Mercosur (Southern Common Market): The India-Mercosur Preferential Trade Agreement (PTA) was signed in 2004 and covers goods.

6. Chile: The India-Chile PTA was signed in 2006 and covers goods.

7. Mauritius: The India-Mauritius Comprehensive Economic Cooperation and Partnership Agreement (CECPA) was signed in 2021 and covers goods, services, and investment.

8. Singapore: The India-Singapore Comprehensive Economic Cooperation Agreement (CECA) was signed in 2005 and covers goods, services, and investment.

What are the benefits of free trade agreements?

Free trade agreements offer several benefits to participating countries. These include:

1. Increased international trade: Free trade agreements remove trade barriers, making it easier for countries to trade with one another. This can lead to increased exports and imports, which can boost economic growth.

2. Lower prices for consumers: When trade barriers are removed, goods and services become more affordable for consumers. This can lead to lower inflation rates and increased purchasing power.

3. Increased investment: FTAs can attract foreign investors by creating a more stable and predictable investment environment. This can lead to increased job creation and economic growth.

4. Access to new markets: FTAs provide access to new markets, which can increase export opportunities for businesses.

Conclusion

India`s free trade agreements offer significant potential benefits for the country`s economic growth. By removing trade barriers and creating a more open and competitive marketplace, India can increase its exports, attract foreign investment, create jobs, and boost economic growth. As India continues to negotiate and sign free trade agreements with other countries, it is likely that the country`s international trade portfolio will continue to expand and diversify.