India launches FTA with UK

Context

Recently, India has launched the Free Trade Agreement negotiations with the United Kingdom.

 What are Free Trade Agreements (FTAs)?

• A free trade agreement (FTA) is a treaty between two or more countries to facilitate trade and eliminate trade barriers. 
• FTAs normally cover trade in goods (such as agricultural  or  industrial  products)  or  trade  in  services  (such  as  banking,  construction, trading  etc.).  
• FTAs  can  also  cover  other  areas  such  as  intellectual  property  rights (IPRs), investment, government procurement and competition policy, etc.
• It aims at eliminating tariffs completely from day one or over a certain number of years.
• Free trade agreements help create an open and competitive international marketplace.

Status of the trade pacts under negotiation

• India now has in place 10 FTAs and six PTAs (preferential trade agreements). 
• In addition, India is negotiating 16 new and expanding seven existing agreements, including with trading partners such as Canada, the EU, the US, alongside Australia and the UK.