India’s Free Trade Agreement (FTA) with New Zealand faces scrutiny as trade deficits with key partners and grassroots protests highlight tensions between economic strategy and domestic concerns.
India’s expanding network of free trade agreements (FTAs) has drawn both praise and criticism, with recent developments around its pact with New Zealand reflecting broader debates about economic strategy and domestic impacts. While policymakers emphasize FTAs as tools for market access and global integration, opposition groups warn of risks to agriculture and labor, citing data on trade imbalances and public unrest.
Trade Deficits and Strategic Concerns
India’s FTA strategy has focused on securing greater market access, with agreements signed or under negotiation with partners including the United Arab Emirates, Australia, the United Kingdom, the European Union, and New Zealand. However, the benefits of these pacts are increasingly questioned, as trade deficits with key FTA partners have grown sharply. Data from The Hindu reveals that India’s trade deficit with ASEAN rose from $10.4 billion in 2012 to $51.2 billion in 2025, driven by surging imports. Similar trends are observed with Japan and South Korea, where imports outpaced exports, eroding trade balances. India’s trade surplus with Singapore turned into a deficit after signing the trade agreement, reflecting weakening export competitiveness.
Protests and Labor Concerns
Opposition to FTAs has manifested in grassroots protests, particularly in states like Andhra Pradesh. Farmers’ and workers’ organizations staged a “Jail Bharo” campaign in Vijayawada on Monday, demanding the cancellation of FTAs with the U.S., UK, and New Zealand. The Hans India reports that participants accused the government of prioritizing corporate interests over domestic agriculture, warning that FTAs could deepen the farm sector’s crisis. The policies of the Narendra Modi government are favouring corporate companies at the expense of farmers and workers,
said Vadde Sobhanadreeswara Rao, a leader of the AP Farmers’ Associations Coordination Committee.
The protests highlight fears of job losses and reduced protections for labor. Leaders criticized the government’s four labour codes, alleging they enable worker exploitation. FTAs would adversely affect domestic agricultural production and push the farm sector into a deeper crisis,
The Hans India quotes, with some leaders warning of rising farmer suicides if policies remain unchanged. The agitation culminated in a voluntary arrest by protesters, underscoring the intensity of the debate.
The organizers of the Vijayawada protest included CITU NTR district secretary K Durgarao, AITUC city president KR Anjaneyulu, AITUC State general secretary S Venkatasubbayya, AITUC Vijayawada city general secretary Muli Sambasiva Rao, CITU NTR district general secretary NCH Srinivas, and district president A Venkateswara Rao. The event was part of a nationwide call, with farmers and workers participating in a rally from Lenin Centre to the police station. Protesters raised slogans against the Centre’s proposed FTAs and offered themselves for arrest after discussions with the Station Circle Inspector. Their names were recorded by the police before a meeting was held.
The tension between India’s FTA ambitions and domestic opposition reflects a broader challenge: balancing global integration with economic safeguards. While the government aims to expand bilateral trade, the existing data on trade imbalances and grassroots dissent suggest that the narrative of FTAs as unambiguous economic growth tools is contested. Critics argue that the current approach risks exacerbating vulnerabilities in agriculture and labor, even as officials emphasize the strategic value of FTAs in securing market access and reinforcing economic partnerships.
