Commerce Minister Piyush Goyal said this week that every free trade agreement India signs protects sensitive sectors such as agriculture, fisheries and small industries. What does that protection actually mean?

A free trade agreement lowers tariffs and trade barriers between countries, opening markets for exporters. But for India, with millions of small farmers and MSMEs, fully opening sectors like dairy or farming could expose them to cheaper imports they cannot compete with.

So India negotiates exclusions and long phase-in periods for sensitive goods. Sensitive items are kept off tariff-reduction lists entirely, while India gains duty-free access for goods it produces competitively, such as textiles, pharmaceuticals and engineering products.

India has concluded nine FTAs and preferential pacts in four and a half years, covering 38 developed countries. Goyal says each deal was negotiated with deep stakeholder consultation. Critics argue such protections slow trade liberalisation; the government says they are needed to shield vulnerable livelihoods while exports grow.