This blog explores the transformative landscape of India’s trade diplomacy. From the sands of the UAE to the innovation hubs of the UK, India is aggressively rewriting its economic future through a series of landmark Free Trade Agreements (FTAs).
The New Era of Indian Trade: A Deep Dive into
Key FTAs
India is no longer a bystander in global
trade. By moving away from multi-nation blocs and toward high-quality bilateral
deals, India is securing market access for its "Make in India" goods
and opening doors for its world-class services sector.
1. India-Australia:
The ECTA & Beyond
The Economic Cooperation and Trade
Agreement (ECTA), signed in 2022, was a watershed moment.
·
The Deal: Australia offered zero-duty access to 100% of Indian
exports.
·
Strategic Win: India gains critical minerals (lithium, cobalt) for its EV
industry, while Australia gets a massive market for its premium wine, wool, and
agricultural products.
·
Status: While ECTA is active, both nations are currently negotiating a
more "Comprehensive" agreement (CECA) to further liberalize services
and investment.
2. India-UAE: The Gold
Standard
The Comprehensive Economic Partnership
Agreement (CEPA), active since May 2022, is India’s most successful recent
pact.
·
Impact: Bilateral trade is eyeing the $100 billion mark by 2030.
·
Sector Winners: Gems and jewelry, textiles, and engineering goods.
·
Innovation: This deal paved the way for the "Bharat Mart" in
Dubai and simplified rules of origin, making the UAE a gateway for Indian goods
to Africa and Europe.
3. India-UK: The
Historic Bridge
After years of intense negotiations, the India-UK
FTA was signed in July 2025.
·
The Deal: India agreed to slash tariffs on iconic British goods like Scotch
whisky (from 150% to 75% initially) and cars.
·
Services Focus: A key win is the Double Contributions Convention,
ensuring professionals moving between the two countries don’t pay social
security twice.
·
Timeline: Implementation is expected in early 2026 following
parliamentary scrutiny.
4. India-EFTA: The
$100 Billion Pledge
In October 2025, India’s agreement with the European
Free Trade Association (Switzerland, Norway, Iceland, and Liechtenstein)
officially came into force.
·
The Big Number: This is the first FTA where the partner bloc has legally
committed to investing $100 billion in India over 15 years.
·
Jobs: The deal is projected to create 1 million direct jobs in
India.
5. India-Oman:
Strengthening the Gulf
Signed on December 18, 2025, the India-Oman
CEPA is India’s newest bridge to the Middle East.
·
Duty-Free Access: Oman has granted zero-duty access to 98% of Indian
goods.
·
Energy Security: Beyond trade, this pact secures India's energy interests and
allows 100% FDI for Indian firms in Omani service sectors.
6. India-New Zealand:
The Recent Breakthrough
On December 22, 2025, India and New
Zealand concluded their FTA negotiations in a record nine months.
·
Key Highlights: 100% zero-duty access for Indian exports and a $20 billion
investment pledge from New Zealand.
·
Mobility: It includes generous post-study work visas (up to 4 years) for
Indian doctoral scholars.
7. India-Mauritius:
The African Gateway
The CECPA (2021) was India’s first
trade pact with an African nation.
·
Role: It serves more as a strategic foothold. Mauritius acts as a hub
for Indian companies to expand into the broader African market under the
African Continental Free Trade Area (AfCFTA).
| Partner | Agreement Type | Current Status | Key Benefit for India |
| UAE | CEPA | Active (2022) | $100B trade target; Gems & Jewelry boost |
| Australia | ECTA / CECA | Active / Negotiating | Access to critical minerals & energy |
| EFTA | TEPA | Active (Oct 2025) | $100B investment & 1M jobs commitment |
| UK | FTA | Signed (July 2025) | Professional mobility; Whisky/Auto tariff cuts |
| Oman | CEPA | Signed (Dec 2025) | 98% duty-free goods; Gulf strategy |
| New Zealand | FTA | Concluded (Dec 2025) | Education & student mobility; MSME growth |
| Mauritius | CECPA | Active (2021) | Strategic gateway to Africa |
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