The secretary said that the country’s track record in FTA utilisation is “not great”.
Speaking at the Confederation of Indian Industry (CII) Annual Business Summit 2026, Agrawal said, “FTA utilisation is something we have questioned again and again. What is the benefit that FTAs are actually giving to the country.”
The secretary noted that the agreements have contributed to higher trade volumes, but exports have grown at a slower pace than imports.
However, he suggested this may reflect India’s growing domestic demand. “We are one of the fastest-growing major economy areas in the world. We are growing very fast. We are consuming more. Maybe we are not able to create those surpluses.”
The secretary said that the new “modern FTAs“, with countries including Mauritius, Australia, European Union, United Kingdom and New Zealand, have gone beyond tariffs.
He added that these new agreements are with developed economies, which are complementary in nature, can bring investments into India.Agrawal highlighted that both industry and government need to leverage these agreements to make them useful for India.