Current FTAs are game changer for India, unlike UPA's ASEAN deals, says Piyush Goyal

Commerce and Industry Minister Piyush Goyal has described the recently signed India-UK Free Trade Agreement (FTA) as a landmark deal, claiming it to be the most comprehensive and consequential FTA India has signed to date. According to Goyal, this agreement marks a significant milestone, unlocking new economic opportunities for sectors such as agriculture, MSMEs, fisheries, and youth entrepreneurship in India.

On Saturday, Goyal said the India-UK Comprehensive Economic and Trade Agreement (CETA) is a “win-win” pact for both nations. The agreement was signed in New Delhi by Goyal and UK’s Secretary of State for Business and Trade, Jonathan Reynolds, in the presence of Prime Minister Narendra Modi and UK Prime Minister Keir Starmer. CETA guarantees duty-free access for 99 percent of Indian exports to the UK, covering virtually the entire trade basket — a move expected to boost sectors ranging from textiles and gems to pharmaceuticals and agri-products.

In a sharp comparison with earlier trade pacts, Goyal noted that most of the FTAs signed during the UPA government were with ASEAN countries, which he said have not reciprocated India’s market access with similar openness. “These ASEAN nations are, in many cases, India’s direct competitors. Unlike those deals, the Modi government has focused on FTAs with developed nations, where competition risk is lower and the benefits are more strategically aligned,” Goyal said.

Goyal added FTAs done with Japan, Korea done during the UPA time have not yielded significant returns. "We are in continuous dialogue with those nations in ASEAN to work on issues," he said.

He emphasized that the strategic shift in India’s trade policy under the current government reflects a focus on high-value, low-risk partnerships. “Unlike in the past, we are now negotiating FTAs with countries that complement India’s growth rather than threaten it,” he said.

Giyal added that though the India Cabinet has already approved the deal, British Parliament could take up to a year to operationalise the India-UK FTA.

Commenting on the broader outlook, Goyal mentioned that India is in active negotiations with several countries and trade blocs, including the European Union (EU), the United States, Peru, Chile, and Oman. “Each FTA has its own template based on mutual interests, and all our ongoing negotiations are moving at the right pace, with the right intent,” he said. “There is no trade war with anyone. We are engaging constructively across the board.”

Goyal reaffirmed the government’s commitment to transparency and national interest in all ongoing trade deals. “Whenever any agreement reaches finalisation, the public will be informed. Our priority is clear — we are here to ensure maximum value and minimal vulnerability for Indian producers and exporters.”

With CETA signed and several key negotiations underway, the Modi government’s FTA strategy is being increasingly defined by its emphasis on strategic alignment, reciprocity, and competitiveness, marking a notable departure from India’s trade approach under previous administrations.