The People`s Republic of China has bilateral trade agreements with the blocs, countries and their two specific administrative regions:[13] India has benefited in all free trade agreements signed with its trading partners from a trade balance perspective, and the only countries where the percentage increase in imports was greater than exports were Japan South Korea and Sri Lanka. India, which has not signed a trade agreement since 2012, will soon resume talks on a possible free trade agreement with the European Union and the United States. Even when the Narendra Modi government withdrew from the Comprehensive Regional Economic Partnership (RCEP), it is eager to enter into trade agreements with other economic blocs, said a leading source, adding that India could clearly gain amid growing anti-Chinese sentiment in many parts of the world. The WTO has now forecast a decline in world trade from 13% to 32% in 2020, and economic growth is expected to be at its lowest level since the Great Depression of the 1930s. These will weigh on India, with analysts anticipating a GDP decline of up to 6.8% for the 21st GJ before a smart recovery next year, partly due to a favourable base. However, in this context, exacerbated by the fact that most countries are cautiously following their trade strategy, India must focus on far-reaching free trade agreements with trading partners that offer maximum trade complementarities, particularly in the United States and the EU. In the United States, our untapped export potential as a percentage of current exports is around 60%, compared to 90% for the EU. However, in the face of rising protectionism around the world, India has also increased tariffs this year on a large number of products, including shoes, toys, wooden furniture, kitchen utensils, appliances and certain food products, which will only increase its average import tax to the already high level of 17.1%. While some other countries, including China, Japan and South Korea, boast lower tariffs than India, they have put in place massive non-tariff trade barriers to prevent imports they deem non-essential. India`s exit from rcEP prompted the country to renew its interest in bilateral talks. Free trade agreements between Australia and New Zealand are being revived. India is looking for ways to resume negotiations with the EU and speed up negotiations with EFTA. A free trade agreement between India and the United States is also on the table, which has angered farmers and trade unions in their own countries because it would harm local agriculture.

There are a number of issues that need to be addressed in India`s approach to free trade agreements and trade agreements in general. In addition to these agreements, bilateral trade negotiations are underway with Bangladesh, Canada, Colombia, the Gulf Cooperation Council, Iran, Israel, the Economic Union of Eurasia, led by Russia, Uruguay, Venezuela and Mauritius, which would establish themselves in Africa through the African Continental Free Trade Area. Further afield, the government is at various stages of reviewing discussions with Cambodia, China, Costa Rica, Egypt, Hong Kong, Indonesia, Korea, the Philippines, SACU (South African Customs Union) and the United Kingdom. Fifth, it is essential for India to carefully select its new free trade partners. While the focus should be on countries with greater trade complementarity, making the EU, the UK and the US natural allies, it must be kept in mind that these countries are tough negotiators.