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Significance

Delhi appeared sceptical about FTAs during Prime Minister Narendra Modi’s first term (2014-19) but demonstrated greater enthusiasm for them during his second (2019-24), agreeing deals with Mauritius, the United Arab Emirates (UAE), Australia and the European Free Trade Association (EFTA). Modi began his third term last month.

Impacts

India will give considerable importance to reviewing its FTA with ASEAN, in light of its sizeable trade deficit with the group.

Finalising a deal with London may help speed up talks with Brussels.

Delhi will keep trying to attract multinationals that are aiming to diversify their production lines as part of a ‘China plus one’ approach.

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