New Delhi, March 14 India’s free trade agreements (FTAs) with “targeted” partners have helped merchandise trade with those countries grow 92 per cent between FY21 and FY25, far higher than the 41.5 per cent rise in India’s overall merchandise trade with the rest of the world, a new report has said.
The report from Atalayar said that India shifted from a defensive trade policy to a growth‑oriented approach that prioritises partners with trade complementarities.
“India's recent FTAs are not speculative exercises. They are rooted in trade corridors that were already growing rapidly during the post-COVID recovery,” it said.
Further, the media house forecasted that India's trade with FTA partners signed since 2021 is expected to more than double by 2030 as tariff commitments deepen, services provisions mature, and investments transform into new productive capacity,.
"India has focused on partners with whom trade complementarities are already strong, logistics are efficient, and economic interests are aligned," the report said.
India is increasingly choosing partners with whom bilateral trade was already expanding to amplify an existing dynamic, rather than build new relationships from scratch, it explained.
The share of FTA partners in India’s total trade basket rose from around 11–12 per cent in FY21 to nearly 16.5 per cent in FY25, the report said.
"This shift reflects a deliberate strategy to prioritise bilateral economies with high trade intensity, trade-oriented and aligned with India's strengths in manufacturing, energy processing, pharmaceuticals, services and investment-driven growth," the report said.
The report highlighted that FTA with the United Kingdom in 2025 improved market access, addresses barriers in services and professional mobility, and strengthens investment links in technology, finance, advanced manufacturing, and clean energy.
The pact reflects India's confidence to compete in developed markets without compromising its domestic economic policy space, the report said.
The Australia FTA of 2022 strengthened ties in services, particularly in education and professional services, and supported cooperation in clean energy and critical minerals while the New Zealand pact led the trade to grow around 50 per cent from a relatively small base.
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