What Happened
- Commerce Minister Piyush Goyal stated that concessions under every Free Trade Agreement (FTA) signed by India have been given only after private sector approval.
- Goyal emphasised that Indian farmers would have no reason to complain once the India-US Interim Agreement is finalised.
- The government asserted that India has signed eight FTAs since 2022 from a position of strength, always prioritising farmers, fisherfolk, and MSMEs.
- Under the India-US framework, Indian agricultural products will receive zero-duty access to the US market, while no tariff concessions have been granted for US agricultural products entering India.
- Sensitive items excluded from concessions include wheat, rice, poultry, GM foods, soya meal, corn, maize, millets, sugar, domestically produced fruits, pulses, oilseeds, animal feed, groundnuts, honey, and fuel ethanol.
Static Topic Bridges
India's Free Trade Agreement Architecture (2022-2026)
India has pursued an aggressive FTA strategy since 2022, concluding agreements with multiple trading partners. The India-UAE Comprehensive Economic Partnership Agreement (CEPA) was implemented in May 2022, followed by the India-Australia Economic Cooperation and Trade Agreement (ECTA) in December 2022. The India-UK FTA was finalised in May 2025, eliminating tariffs on 99% of Indian exports and 90% of UK exports. The India-EFTA Trade and Economic Partnership Agreement (TEPA) with Switzerland, Norway, Iceland, and Liechtenstein entered into force on 1 October 2025. The landmark India-EU FTA was concluded on 27 January 2026 at the 16th India-EU Summit, liberalising 92.1% of India's tariff lines covering 97.5% of EU exports. India now has preferential trade access with over 50 countries.
- India-UAE CEPA: Implemented May 2022
- India-Australia ECTA: Implemented December 2022
- India-UK FTA: Finalised May 2025
- India-EFTA TEPA: Entered into force 1 October 2025
- India-EU FTA: Concluded 27 January 2026
- Total FTAs since 2022: Eight, with 37 developed countries
Connection to this news: Goyal's statement on private sector consultation reflects the government's approach to FTA negotiations where industry stakeholders and farmer bodies are consulted before finalising tariff concession schedules, a process that has become more formalised after criticism of earlier agreements like the India-ASEAN FTA.
WTO Framework and India's Agricultural Trade Policy
India's agricultural trade policy operates within the World Trade Organization (WTO) framework. Under the WTO's Agreement on Agriculture (AoA), countries negotiate on three pillars: market access (tariff reduction), domestic support (subsidies), and export competition (export subsidies). India has consistently used the Special Safeguard Mechanism (SSM) provision to protect vulnerable agricultural sectors from import surges. India's applied tariff on agricultural products averages around 38%, with bound rates significantly higher at over 100% for many products, giving India policy space to modulate tariffs. The Agreement on Agriculture allows developing countries greater flexibility through the Special and Differential Treatment (S&DT) provisions.
- WTO Agreement on Agriculture: Three pillars — market access, domestic support, export competition
- India's average applied agricultural tariff: approximately 38%
- India's bound tariff rates: over 100% for many agricultural products
- Special Safeguard Mechanism (SSM): Allows temporary tariff hikes against import surges
- India classified as a developing country in the WTO
Connection to this news: The exclusion of sensitive agricultural items from the India-US interim agreement reflects India's longstanding WTO negotiating position of protecting food security and farm livelihoods, maintaining high bound tariffs on agricultural products as policy space.
Stakeholder Consultation in Trade Policy
India's trade policy formulation involves consultations at multiple levels. The Board of Trade, reconstituted in 2021, includes exporters, industry associations, and state government representatives. For FTA negotiations, the Department of Commerce conducts stakeholder consultations through the Federation of Indian Export Organisations (FIEO), Confederation of Indian Industry (CII), and agricultural bodies. The Foreign Trade Policy 2023 (FTP 2023) emphasised a shift from an incentive-based regime to a facilitation and remission-based one, integrating stakeholder feedback into policy design. Additionally, Parliamentary Standing Committees on Commerce periodically review FTA outcomes and have recommended greater transparency in negotiations.
- Board of Trade: Reconstituted in 2021 as an advisory body
- Key stakeholder bodies: FIEO, CII, FICCI, ASSOCHAM, farmer unions
- FTP 2023: Shift to facilitation-based trade policy
- Parliamentary oversight through Standing Committee on Commerce
Connection to this news: Goyal's assertion of private sector approval for FTA concessions addresses concerns raised by farm unions, particularly the Samyukt Kisan Morcha, that the India-US deal was negotiated without adequate consultation with farmer representatives.
Key Facts & Data
- India has signed eight FTAs since 2022, covering 37 developed countries
- India-US framework: India gets zero-duty agricultural access to US; no US agricultural concessions into India
- Items excluded from India-US deal: wheat, rice, poultry, GM foods, millets, sugar, pulses, oilseeds, and others
- India's average applied agricultural tariff is approximately 38%
- India has preferential trade access with over 50 countries