Agriculture remains a crucial sector of India's economic development, supporting a large share of the population, contributing to rural livelihoods, and ensuring food security. Given this, there are significant concerns about how Free Trade Agreements (FTAs) will affect agricultural trade and, consequently, development outcomes as India becomes more integrated into the global economy. With an emphasis on Trade creation (TC) and Trade diversion (TD), this study investigates how the India–Japan Comprehen-sive Economic Partnership Agreement (CEPA) affects agricultural trade. Although Free trade agreements (FTAs) are supposed to increase efficiency and welfare by fostering trade, their effects on agriculture are often influenced by enduring distortions, such as tariffs, subsidies, and strict non-tariff measures, including phytosanitary and sanitary standards. These factors are particularly relevant in the context of India and Japan because structural disparities and regulatory barriers may limit the realisation of potential trade benefits. Using panel data for India and its major trading partners from 2004 to 2020 and a gravity model framework, the study empirically evaluates the extent to which the India-Japan CEPA has facilitated agricultural trade. The results indicate that although there is some evidence of trade creation, it remains relatively small, and non-tariff barriers continue to restrict the market access of Indian agricultural exports. TD, however, suggests a reorientation of trade flows, which might not always increase overall efficiency.