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Free Trade Agreement (FTA)
A free trade agreement reduces or removes tariffs and other barriers on trade between the partner countries. FTAs often exclude sensitive sectors and include rules on services, investment and intellectual property.
Why It Matters
FTAs lower prices for consumers and open markets for exporters, but can hurt protected industries.
In India
India concluded an FTA with the European Union in January 2026, giving over 93% of Indian goods duty-free access once it takes effect.