20. Trade diplomacy of India

India’s Recent FTAs from 2021

1. 2021 - first ever FTA with Africa

2. 2022

3. 2024

4. 2025

5. 2026

1. Mauritius

2. UAE, Australia,

3. EFTA = TEPA (switzerland = Lichenstien, Norway, Iceland)

4. UK, Oman, NewZeland

5. EU

Trade agreement hierarchy

PTA < FTA < CECA/CEPA/TEPA (Investment) < Customs union < Common market < Economic Union

TEPA (Trade and Economic Partnership Agreement)

Investment Led, similar to CEPA but uniqueness is that binding investment commitment

Bilateral investment treaty

This is not a trade deal. It protects investments from changing laws in future and thus protecting the rights of investors

India-UK CETA, 2025

1. Double Contribution Convention

2. Tax cut for EU goods

3. Tax cut for Indian goods

4. Young professionals

5. Rules of Origin

6. Investment/ BIT

7. Digital trade

8. Negative list

1. Indian Professionals in Uk and Vice-versa are exempt from social security tax for 3 years to avoid double paying in both countries

2. Scotch, Whiskey, Automobiles

3. 0% duty on Textiles, leather, marine products

4. 3000 visas per year for 18-30 age for 2 years

5. Condition that substantial transformation in India/UK

6. Not decided yet

7. Commitment to Cross-Border data flows but with exception for public policy

8. Dairy, Agri, Gvt procurement procuts

India-EU Broad-based Trade and Investment Agency (BTIA) - very very imp

1. Launched when

2. Pillar 1: trade
   - Ratification to be done by member countries or EU parliament
   - Tariff reduction in EU products
   - India’s benefits

3. Green barrier

4. CBAM’s Future parity clause:

5. Pillar 2: Investment Pillar
   - ratification is by
   - dispute mechanism

6. GI pillar

1. 2007 and since then negotiating but finalised recently

2. - EU parliament
   - Luxury cars
   - Wines
   - Zero duty in Textiles, Leather, Sports, Goods, Marine products

3. Unlike UK deal, this access is linked to strict Sustainability Standards

4. not cancelled CBAM but in future if any country is given exmeption then india is exempted automatically

5. - All 27 member countries
   - first time India agreed for a new Investment court system instead of Investment-State dispute mechanism (courts decide)

6. EU accepted Basmati/darjeeling tag
   - India accepted for Champagne, Feta, Parmesan

India-Newzeland FTA

1. ratification

2. Dairy wall

3. benefits for Newzeland

4. India’s export benefit

5. Investment pledge

1. pending

2. Milk and milk products are out of FTA

3. Fruits and Timber and sheep meat, apple is excluded

4. Textiles, pharma, leather, jewellary are 0%

5. Newzeland committed 20 billion investment in India

GIFT city

India-Australia, 2022

1. double taxation (DT)

2. Visas

3. costly wine vs cheap wine

1. Australia abolished DT on Indian IT firms

2. for yogas, teachers, chefs

3. duty reduced vs duty not reduced

India-UAE CEPA, 2022

1. Gold and Jewellary

2. Education

1. India will import gold at 1% concessional duty while jewelry exports will be taxless

2. Established IIT Delhi campus in Abu dhabi

India-EFTA

1. which countries

2. Unique feature

1. Swiss, Lichenstein, Norway, Iceland

2. 100 billion binding commitment

India-Oman, 2025

1. strategic access

2. reduction in taxes

1. to duqm port in oman

2. reduced aluminium taxes from oman imports