Phase IFoundation
Background
Overview
UPSC frequently examines India's trade policy, its strategic rationale, challenges in negotiations (especially balancing domestic interests with global commitments), and the economic impact of such agreements on various sectors.
Free Trade Agreements (FTAs) are pacts between two or more countries to reduce or eliminate barriers to trade, such as tariffs and quotas, to facilitate the exchange of goods and services. For India, FTAs are a key component of its trade policy, aimed at boosting exports, attracting investment, and integrating into global supply chains, often driven by geopolitical and economic imperatives.