Why in the News?
Union Commerce Minister Piyush Goyal announced that India will soon get preferential market access to 38 developed countries through multiple Free Trade Agreements (FTAs).
These countries together account for:
- Two thirds of global trade
- Two thirds of global GDP
Key FTAs Mentioned
Already Operational
- EFTA Countries (Effective October 2025): Switzerland, Norway, Liechtenstein, and Iceland
Upcoming FTAs
1. UK FTA: Expected to become operational: May 1, 2026
2. Oman FTA: Expected to become operational: June 1, 2026
3. New Zealand FTA
- Signing expected soon
- Likely operational: January 2027
4. European Union (EU) FTA: Expected operational timeline: Early next year
- Around January–February
What is Preferential Access
Preferential access means:
- Lower tariffs for Indian exports
- Better market access compared to competitors
- Boost to exports and manufacturing
Example:
- If India’s tariff = lower than competitors
- Indian goods become more competitive
| [2017] ‘Broad-based Trade and Investment Agreement (BTIA)’ is sometimes seen in the news in the context of negotiations held between India and (a) European Union (b) Gulf Cooperation Council (c) Organization for Economic Cooperation and Development (d) Shanghai Cooperation Organization |
