Impact of free trade agreements on the various facets of Indian economy

Abstract

Free trade policies are pacts — two or more nations to reduce barriers to imports and exports among them, Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange. India has bilateral free trade agreements with Afghanistan, ASEAN countries, Bhutan, Japan, S. Korea. It is a widely accepted notion that these agreements have a strong impact on the domestic business. Firms from the other countries with a considerable cost advantage can bring cheaper products and compete strongly with domestic business.