Progress on India's Free Trade Agreements
India is making significant progress on its free trade agreements (FTAs) with New Zealand, Canada, and the European Union. Commerce Secretary Rajesh Agrawal provided updates on these agreements on September 15.
### India-New Zealand FTA
The India-New Zealand FTA is expected to become operational in the second half of October 2026. The exact date will be announced once both sides agree on the operational procedures. This agreement aims to strengthen trade ties between the two nations.
### India-Canada FTA
India and Canada are currently in the fourth round of FTA negotiations, being held in New Delhi from September 14-18. Around 48 Canadian officials are participating in the talks. Two chapters have already been concluded, and discussions on all chapters are ongoing. Both sides are optimistic about making good progress and potentially concluding the FTA talks by the end of 2024.
### India-EU FTA
The India-European Union FTA is also moving forward as scheduled. The pact is expected to advance towards signing after obtaining the necessary approvals from the EU Council. Agrawal expressed optimism that the agreement will be signed by the end of 2024. Following the signing, the pact will be sent to the European Parliament for approval.
The India-EU FTA is expected to provide Indian exporters with greater access to the large European market, strengthening trade and investment ties between India and the EU. Agrawal described the pace at which the EU has moved on the trade agreement as the fastest he has seen for an EU FTA.
Future Developments
Commerce and Industry Minister Piyush Goyal is expected to hold a bilateral meeting with the US Trade Representative during the G20 meeting in the US later this month. The proposed meeting will focus on the way forward for the India-US trade deal.
Significance and Context
These FTAs are crucial for India's trade and economic growth, providing opportunities for Indian businesses to access new markets and strengthen existing trade relationships. The agreements are expected to boost Indian exports, create jobs, and attract investments.