India is currently reevaluating its approach to free trade agreements (FTAs) as it engages in negotiations with Western nations. FTAs have become increasingly popular among developing countries as a means to enhance international trade, as they are seen as more favorable to these nations compared to multilateral agreements.

The recent analysis conducted by the Global Trade Research Initiative (GTRI) has raised concerns about India's trade performance with key FTA partners such as ASEAN, South Korea, and Japan. The analysis compared trade data from the period before the FTAs (2007-2009) to the current period (2019-2021) and revealed a significant increase in India's merchandise trade deficit with these partners. Specifically, the trade deficit with ASEAN has risen by 201.5%, while with South Korea and Japan it has increased by 142.5% and 120.6% respectively.

In contrast, India's overall trade deficit with the rest of the world has only grown by 43.1%, which raises questions about the effectiveness of these agreements in improving India's trade position.