India’s External Sector

Regional Trade Agreements (RTAs)

India’s endeavour to foster its international trade has also been well complemented by its efforts to promote regional trade. The successful conclusion of the Uruguay Round and the establishment of the WTO was followed by a wave of Regional Trade Agreements (RTAs) in the world and India too was no exception to this. India signed RTAs with several countries/areas under which they promised to give another country's products lower tariffs. India views RTAs as 'building blocks' towards the overall objective of trade liberalisation and it has adopted a very cautious and guarded approach to regionalism in the recent years.

The structure of India’s RTAs varies hugely and includes Free Trade Agreements (FTAs), Preferential Trade Agreements (PTAs), Comprehensive Economic Cooperation Agreements (CECAs) and Comprehensive Economic Participation Agreements (CEPAs) . CECA was the first of its kind of trade agreement (signed by India and Singapore on June 29, 2005) which ushered in a new model for future bilateral and regional economic alliances. In the past decade, India has been engaging other countries and trading blocs in bilateral/ regional trade agreement negotiations at a rapid pace. The section below provides a detailed listing of India’s RTAs (operational and under negotiations) compiled from the WTO and Ministry of Commerce, India.

India’s Operational RTAs

Majority of India’s bilateral trade agreements have been established only recently. In Asia, India made a foray in RTAs with an FTA with Sri Lanka that came into force in 2001. This was followed by a CECA with Singapore, and FTAs and PTAs with other developing countries/ smaller nations, geographically close to India. India also has RTAs with the Association of South East Asian Nations (ASEAN) and South Asian Association for Regional Cooperation (SAARC) members under SAFTA. The most recent initiative is the CECA with Malaysia and CEPA with Japan that were signed in February 2011. These initiatives form an integral part of India’s ‘Look-East Policy’, which has gained substantial momentum in recent years and has started yielding desirable results on the economic, political and strategic fronts.

India’s Participation in Regional Trade Agreements

Countries shaded in pink are the signatories of RTAs with India

Countries, with which there already exists a bilateral treaty, are being targeted for upgradation to CECA/CEPA level from existing agreement. The fact that CECAs have become a model for India’s trade agreement policy is a testament to the success of the India-Singapore pact.

India’s Operational Regional Trade Agreements (RTAs)

India’s Operational RTAs

India is also seriously pursuing negotiations to establish RTAs with other developing countries located elsewhere. Negotiations for a Broad-based Bilateral Trade and Investment Agreement (BTIA) between India and the EU also started in June 2007. Majority of the agreements (listed below) are being negotiated along the economic integration agreement route (i.e. CECA/CEPA).

• India-Canada FTA
• India-Sri Lanka CEPA
• India-Thailand CECA
• India-Malaysia CECA
• Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) FTA
• India-Gulf Cooperation Council (GCC) FTA
• India-Mauritius Comprehensive Economic Cooperation and Partnership Agreement (CECPA)
• India- South African Customs Union (SACU) PTA
• India- European Union (EU) Broad Based Trade and Investment Agreement
• India-European Free Trade Association (EFTA) Negotiations on broad-based Bilateral Trade and Investment Agreement
• India -New Zealand FTA / CECA
• India-Australia FTA

For further details on India’s Regional Trade Agreements, please refer http://commerce.nic.in/trade/international_ta_current.asp

Foreign Trade

India’s total exports during FY 2009-10 stood at US$179 billion as compared to US$ 185 billion. However according to latest releases, India’s exports during October 2010 were valued at US$ 17.9 billion registering a growth of 21.3 per cent in dollar terms than the level of US$ 14.8 billion during October 2009. Cumulative value of exports for the period April-October 2010 was US$ 121.3 billion as against US$ 95.7 billion, registering a growth of 26.8 per cent in dollar terms, over the same period last year.

Data on Principal Exports and Imports

India’s total imports during FY 2009-10 stood at US$288 billion as compared to US$ 304 billion. However according to latest releases, India’s imports during October 2010 were valued at US$ 27.6 billion representing a growth of 6.8 per cent in dollar terms over the level of imports valued at US$ 25.9 billion in October 2009. Cumulative value of imports for the period April-October 2010 was US$ 194.1 billion as against US$ 154.0 billion registering a growth of 26.0 per cent in dollar terms, over the same period last year.

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