Free Trade Agreement (FTA) or मुफ्त व्यापार समझौता is a bilateral or multilateral agreement between two or more countries that aims to remove or reduce barriers to trade and investment. FTAs are aimed at facilitating the flow of goods and services between the signatory countries by eliminating tariffs, quotas, and other trade restrictions.

The purpose of an FTA is to increase economic growth by opening up markets and increasing competition, leading to lower prices for consumers and greater opportunities for businesses. FTAs can also help to enhance productivity, create jobs, and promote innovation.

India has signed several FTAs with different countries and regions, including Japan, South Korea, ASEAN (Association of Southeast Asian Nations), and the European Union. These agreements have helped to increase trade and investment between India and its trading partners.

The benefits of FTAs are not limited to increased trade and investment. They also help to improve the business environment by promoting transparency, accountability, and good governance. This, in turn, attracts more foreign investment and helps to create a more dynamic and competitive economy.

However, FTAs can also have some negative effects, particularly for small and medium-sized enterprises (SMEs). SMEs may find it difficult to compete with larger businesses and may face challenges in meeting the standards and regulations of the signatory countries. It is, therefore, important to ensure that FTAs are designed to benefit all sectors of the economy and that measures are in place to support SMEs.

In conclusion, FTAs play an important role in promoting economic growth, creating jobs, and enhancing competitiveness. They help to remove barriers to trade and investment and facilitate the flow of goods and services between countries. However, it is important to ensure that FTAs are designed to benefit all sectors of the economy and that measures are in place to support SMEs. Only then can we fully harness the potential of free trade agreements.