In recent years, India's international trade policy has been increasingly moving away from WTO's multilateral framework towards Free Trade Agreements (FTAs). While the WTO's multilateral trade framework obliges its member countries to reduce border duties and adhere to higher labour and environmental standards, FTAs aim at total elimination of all tariffs and contain many items that are not part of the rules of the WTO. Since FTAs have such wide coverage they can create a significant impact on domestic production system. As a result, FTAs may severely impact the growth prospects of certain key sectors of the economy including the Micro, Small and Medium Enterprises (MSME) sector.