India is also part of SAFTA (South Asia Free Trade Agreement), BIMSTEC (to develop a free trade agreement), the Asia-Pacific Trade Agreement (preferential trade agreement with Bangladesh, China, Laos, South Korea and Sri Lanka) and IBSA (the India-Brazil-South Africa triangle, which aims to develop a free trade agreement with South Africa). A comprehensive analysis of trade between India and its key free trade partners, discussed above, shows a significant increase in trade since the agreements came into force. SAFTA came into force on 1 January 2006 and, according to the Ministry of Trade and Industry, bilateral trade between India and other SAFTA member states increased from $6.8 billion in 2005-06 to $28.5 billion in 2018-19. India`s trade with SAFTA grew faster than its overall trade with the world. As a result, SAFTA`s share of India`s international trade increased from 1.6% in 2005-06 to 2.5% in 2018-19. At the same time, Indian exports to SAFTA countries grew faster than their imports from them, resulting in a significant increase in the trade surplus with these economies from about $4 billion to $21 billion. The maximum growth in exports to the SAFTA REGION was recorded with Bangladesh and Nepal. After intense negotiations for a free trade agreement with the EU, talks have stalled since 2013, with differences on several issues unresolved. An economic union is a common market on which Member States coordinate macroeconomic and exchange rate policies. Read also: Modi, Trump had distanced himself from it. Mega-trade agreements will now return after Covid India signed bilateral free trade agreements with Sri Lanka (1998), Afghanistan (2003), Thailand (2004 Singapore (2005), Bhutan (2006), Nepal (2009), Korea (2009), Malaysia (2011) and Japan (2011). One of the main reasons why India has not lost in its traditional markets such as the United States and the EU is the number of trade complementarities with these partner countries.
Major U.S. imports from around the world include, for example, machinery, mineral fuels, pharmaceuticals, organic chemicals, gems and jewelry, furniture, etc., which are also India`s main export products.