Summary
India recently signed major trade agreements with the European Union and the United States. These deals aim to boost trade, but experts note that India faces challenges in effectively using these agreements. Many exporters struggle with complex documentation and rules, which can limit their benefits.
Key Facts
- India signed substantial trade deals with the EU and the US in 2026.
- These deals mark India's 10th free trade agreement since 2014.
- Trade talks began with the Gulf Cooperation Council, which is involved in 15% of India's global trade.
- Historically, India only uses about 25% of its trade agreements effectively, compared to 70%-80% in developed countries.
- Between 2017 and 2022, India's exports to FTA partners increased by 31%, while imports rose by 82%.
- Recent improvements in trade infrastructure have helped boost export growth since 2023.
- Exporters face challenges such as complex rules of origin and high documentation costs.
- Self-certification for origin under the EU deal presents legal and financial risks for exporters.
