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India China Free Trade Agreement 2009

The India-China Free Trade Agreement (FTA) was signed in 2009, with the aim of increasing bilateral trade and investment between the two countries. The FTA is a comprehensive agreement which covers trade in goods, services, and investment.

Under the FTA, India and China agreed to reduce or eliminate tariffs on a wide range of products traded between the two countries. This has resulted in a significant increase in bilateral trade, especially in sectors such as pharmaceuticals, automobiles, and information technology.

The FTA has also created opportunities for Indian businesses to invest in China and vice versa. This has led to a number of joint ventures and collaborations between Indian and Chinese companies in various sectors.

However, the FTA has not been without its challenges. One of the biggest concerns is the trade imbalance between the two countries, with India importing far more from China than it exports. This has led to calls for the FTA to be renegotiated with a focus on addressing the trade imbalance.

Another concern is the impact of the FTA on Indian industries, especially small and medium-sized enterprises (SMEs). Many Indian businesses have struggled to compete with the lower-priced goods imported from China, leading to job losses and other economic challenges.

Despite these challenges, the FTA has played a key role in strengthening economic ties between India and China. It has provided a framework for increased trade and investment, which has benefitted both countries.

As India and China continue to grow and develop, it is likely that the FTA will play an even more important role in shaping the economic relationship between the two countries. With ongoing negotiations and discussions, it remains to be seen how the FTA will evolve in the coming years.