India’s experience with free trade agreements

Abstract

Trade is an important defining activity of human civilization that has a history tracing back several millennia. It has shaped several key events in world history and has arguably played a key role in achieving the high levels of overall prosperity and human achievement that we can see in the modern world today. India has, historically, been an important focal point in the history of international trade. However, there is a general perception in modern Indian policy circles that free trade agreements (FTAs) have not worked very well for post-Independence India. Concerns regarding subsidies, patent regimes and other issues have been frequently raised, that culminated in the faltering of major trade related talks at various multinational fora. With India at the cusp of becoming a major economic powerhouse in the future, it is important for the question of international trade to be thought through from different angles. To make matters more dynamic and complex, the global retreat away from globalization in recent years also poses significant policy challenges to India’s stance in matters related to international trade. Therefore, there is a need to understand and document the Indian experience with free trade agreements and the role they play towards helping India achieve its economic and social development objectives. We intend to trace India’s history with FTAs since Independence, understand how the nature and impact of these FTAs have evolved over time, identify the factors that shaped the narratives surrounding these FTAs and explore their implications for future trade and economic policy. The study will help create a brief primer about India’s experience with FTAs and develop insights into factors that were considered relevant while entering them.