New Delhi, July 6 -- India's trade policy is undergoing a significant transformation. Free trade agreements (FTAs) are increasingly being leveraged as a tool to boost exports, attract foreign investment and improve industrial competitiveness. For decades, India had approached FTAs with caution. However, the new approach is characterized by economic complementarity, strategic alignment, reciprocity and far-sighted discourse.

Old FTAs, uneven gains: India's early FTAs with Asean, Japan and South Korea have not yielded the desired outcomes. Instead, the trade deficit with these countries has widened significantly. While the Asean-India Trade in Goods Agreement (AITIGA) of 2009 helped expand trade volumes, it also widened our trade deficit w...