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Fiscal year 2025-26 witnessed a significant expansion of India's global trade engagement, with New Delhi concluding a series of free trade agreements (FTAs) and comprehensive economic partnership pacts with key economies, including the United Kingdom, Oman, New Zealand and the European Union, aimed at boosting exports, attracting investments and enhancing market access.
According to official data from the Ministry of Commerce and Industry, the agreements formed part of a broader strategy to deepen India's integration with global markets through tariff reductions, investment commitments and enhanced access for goods and services across Europe, the Middle East and the Asia-Pacific region. Among the major developments during the fiscal year, India signed the India-UK Free Trade Agreement, officially known as the Comprehensive Economic and Trade Agreement (CETA), on July 24, 2025. This was followed by the conclusion of the India-Oman Comprehensive Economic Partnership Agreement on December 18, 2025. India also concluded negotiations for a free trade agreement with New Zealand on December 22, 2025, before formally signing the pact on April 27, 2026. Subsequently, on January 27, 2026, India and the European Union finalized the framework for a proposed bilateral free trade agreement. The latest agreements build on a series of trade pacts signed over the past few years as part of India's efforts to diversify export destinations and strengthen economic partnerships. The process began with the signing of the Comprehensive Economic Cooperation and Partnership Agreement (CECPA) with Mauritius on February 22, 2021, India's first trade agreement with an African nation. This was followed by the India-UAE Comprehensive Economic Partnership Agreement (CEPA) on February 18, 2022, and the India-Australia Economic Cooperation and Trade Agreement (ECTA) on April 2, 2022. India further expanded its engagement with Europe through the Trade and Economic Partnership Agreement (TEPA) with the European Free Trade Association (EFTA), signed on March 10, 2024. According to the Ministry of Commerce and Industry, the agreement with the United Kingdom is expected to significantly improve market access for Indian exports, with 90.2 per cent of India's exports to the UK becoming duty-free. The ministry said tariffs on agricultural and processed food products, which earlier ranged between 20 and 70 per cent, have been reduced to zero duty for nearly all tariff lines under the agreement. Industrial goods that previously faced duties of up to 18 per cent will also receive duty-free access. The ministry noted that the agreement with New Zealand eliminates duties on 100 per cent of Indian exports and includes a USD 20 billion investment commitment over a 15-year period. It also marks New Zealand's first-ever annex covering health and traditional medicine services. On the European front, the proposed India-EU agreement is expected to provide preferential access across 97 per cent of tariff lines, covering 99.5 per cent of bilateral trade value. The ministry also highlighted that the EFTA agreement includes a commitment to invest USD 100 billion in India over 15 years, with the potential to generate around one million direct jobs. In addition to bilateral arrangements, India expanded its participation in plurilateral trade initiatives through the Indo-Pacific Economic Framework for Prosperity (IPEF), signing agreements on Clean Economy, Fair Economy and Supply Chain Resilience. The series of trade agreements underscores India's continued focus on strengthening economic partnerships, expanding export opportunities and attracting long-term investments as part of its broader global trade strategy. (ANI)
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