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India on an FTA signing spree, but limited utilisation & widening trade deficits temper gains

India has signed several free trade agreements in the last 5 yrs, but they are yet to be utilised to the extent expected.

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theprint.in

thehindubusinessline.com

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India on an FTA signing spree, but limited utilisation & widening trade deficits temper gains

India signed 7 new FTAs since 2021 (UAE, UK, Australia, EFTA, Oman, New Zealand, Mauritius), shifting from multilateral blocs to bilateral "trusted partner" deals weighted toward services, investment and supply chains. Despite the FTA boom, the trade deficit widened from $94.66B to $119.30B in FY25-26, signaling that deal volume alone won't close the gap without addressing domestic manufacturing competitiveness and chronically low FTA utilisation rates.

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thehindubusinessline.com1 g fa

India should now focus on FTA implementation, utilisation by exporters: Experts

Historically, India's FTA utilisation has hovered around 25%, compared with 70-80% in developed economies, and closing this gap is now the single highest-leverage trade policy reform available

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Timeline cronologica

domenica 24 maggio 2026·theprint.in
India on an FTA signing spree, but limited utilisation & widening trade deficits temper gains
India has signed several free trade agreements in the last 5 yrs, but they are yet to be utilised to the extent expected.
domenica 24 maggio 2026·thehindubusinessline.com
India should now focus on FTA implementation, utilisation by exporters: Experts
Historically, India's FTA utilisation has hovered around 25%, compared with 70-80% in developed economies, and closing this gap is now the single highest-leverage trade policy…