📷 Image: Wikimedia Commons / Ministry of Commerce and Industry (India)
Business
Commerce Secretary says New FTAs Give Investors Tariff Predictability
✍️ Business Standard
🗓 25 Sep 2026, 06:13 AM
👁 11
The Commerce Secretary highlighted that India's recently concluded free trade agreements provide clear tariff structures, enhancing certainty for foreign investors.
Newly negotiated free trade agreements (FTAs) are set to offer investors a stable and predictable tariff regime, the Commerce Secretary told Business Standard. By locking in duty rates and reducing ambiguities, the agreements aim to make India a more attractive destination for foreign capital. The Secretary emphasized that tariff predictability is a key factor for businesses planning long‑term investments in sectors ranging from manufacturing to services.
The government has concluded several FTAs in the past year, covering both bilateral and regional partners. These pacts include provisions that standardise customs procedures and limit sudden changes in import duties. Officials say the clarity will help companies forecast costs more accurately and reduce the risk premium associated with policy shifts.
Analysts view the move as part of a broader strategy to boost trade flows and integrate India more deeply into global supply chains. While the exact impact will depend on implementation, the promise of predictable tariffs is expected to encourage higher foreign direct investment inflows in the coming fiscal cycles.
The government has concluded several FTAs in the past year, covering both bilateral and regional partners. These pacts include provisions that standardise customs procedures and limit sudden changes in import duties. Officials say the clarity will help companies forecast costs more accurately and reduce the risk premium associated with policy shifts.
Analysts view the move as part of a broader strategy to boost trade flows and integrate India more deeply into global supply chains. While the exact impact will depend on implementation, the promise of predictable tariffs is expected to encourage higher foreign direct investment inflows in the coming fiscal cycles.