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India's Free Trade Pacts: Projected ₹1 Lakh Crore Revenue Loss Amid Export Boost Hopes
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FTAs to Cost India 1 Lakh Crore in Revenue Next Year, Boost Exports & Jobs
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CNBC Awaaz
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16-02-2026, 15:17
FTAs to Cost India 1 Lakh Crore in Revenue Next Year, Boost Exports & Jobs
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India's Free Trade Agreements (FTAs) are projected to cause a revenue loss of 1 lakh crore rupees in the next fiscal year.
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The Ministry of Finance's Budget documents estimate a revenue reduction of approximately 1 trillion rupees for FY 2025-26.
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For FY 2024-25, a revenue reduction of 98,569 crore rupees is estimated due to import duty exemptions under FTAs.
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The largest revenue loss, 40,833 crore rupees, is anticipated from the FTA with ASEAN, followed by 11,365 crore rupees from Japan.
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Despite revenue losses, FTAs are expected to significantly boost exports and generate new employment opportunities.
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