A free trade agreement is a pact between two or more nations to reduce barriers to imports and exports among them, which allows, goods and services to be bought and sold across international borders with little or no government quotas, tariffs, quotas, subsidies, or prohibitions to hinder their exchange.
Examples of FTA
The major FTAs that India has signed and implemented so far include :
1. South Asia Free Trade Agreement (SAFTA)
2. India-ASEAN Comprehensive Economic Cooperation Agreement (CECA)
3. India-Korea Comprehensive Economic Partnership Agreement (CEPA)
4. India-Japan CEPA.