What is a Free Trade Agreement?

A Free Trade Agreement (FTA) allows countries to trade goods and services with reduced or zero tariffs, enhancing cross-border economic cooperation.

It is an arrangement where two or more countries commit to opening up their markets to one another by lowering or removing tariffs, quotas, and other trade barriers, making it easier for goods and services to move between them.

However, to prevent misuse of such benefits, the Indian government has recently clarified the definition of "proof of origin"—a key requirement to avail FTA benefits. This ensures only goods genuinely manufactured or sourced from FTA partner countries qualify for duty concessions.