India accelerates deal-making, concludes five trade deals in 18 months

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• India sealed five major trade deals since mid-2024 to boost market access
• EU trade talks concluded; deal covers 25% of global GDP, signing expected soon
• UK, Oman, EFTA, NZ trade deals grant zero-duty access for Indian exports

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Since mid-2024, New Delhi has signed or concluded trade deals with the United Kingdom, Oman and New Zealand. Besides, a pact with the European Free Trade Association (EFTA), a grouping of Switzerland, Norway, Iceland and Liechtenstein, has also come into force.

On January 27, India announced the conclusion of negotiations on a long-pending free trade agreement (FTA) with the European Union (EU), a 27-member bloc, led by major economies such as Germany, France, Italy, Spain and the Netherlands.

Renewed push on deal-making

In 2025, the US imposed steep tariffs on Indian goods, raising duties in two stages to as high as 50 percent on several product categories. India’s merchandise exports to the US were worth about $86.5 billion in FY25, making it India’s single-largest export market.

Of this, exports worth an estimated $48.2 billion were subject to higher tariffs, with government estimates showing that around 55 percent of India’s shipments to the US fell under the new duty structure.

Commerce ministry data indicate that the higher tariffs hurt price competitiveness in key sectors, such as textiles, leather goods, gems and jewellery and engineering products, prompting exporters to redirect shipments and seek alternative markets. This reinforced the case for preferential market access through FTAs to reduce vulnerability to sudden tariff actions.

EU: Trade talks concluded

On January 27, India and the EU announced the conclusion of negotiations on an FTA that has been under discussion for several years.

Prime Minister Narendra Modi said the agreement was a timely and ambitious step that would deepen economic ties and strengthen India’s integration with global value chains. “People are calling this the mother of all deals. This agreement will bring major opportunities for the public in India and Europe. This is a perfect example of a partnership between two major economies of the world. This agreement represents 25 percent of the global GDP and 1/3rd of global trade," Modi said as he remotely inaugurated the India Energy Week 2026, which is being held in Goa.

"I congratulate textiles, gems and jewellery and leather sectors that will benefit from the trade deal," he added.

Government data shows that the EU is India’s largest trading partner in goods, with bilateral trade worth around $136 billion in FY25. The agreement is expected to include phased tariff reductions, safeguards for sensitive sectors and improved access for Indian services. Legal vetting and formal signing are expected to follow next.

UK: Trade pact signed in July 2025

India signed a Comprehensive Economic and Trade Agreement (CETA) with the United Kingdom on July 24, 2025. Bilateral trade between the two countries stood around $56 billion, with the pact targeting a doubling of trade to about $112–120 billion by 2030.

Under the agreement, nearly 99 percent of Indian tariff lines get zero-duty access to the UK market, benefiting labour-intensive sectors such as textiles, leather, gems and jewellery, and engineering goods. It also expands services trade and eases mobility for professionals, while allowing calibrated tariff reductions for British exports.

Oman: CEPA signed in December

India and Oman signed a Comprehensive Economic Partnership Agreement (CEPA) on December 18, 2025, covering trade in goods and services, investment and economic cooperation.

Under the pact, Oman has offered zero-duty access on about 98 percent of its tariff lines, covering over 99 percent of India’s exports to Oman by value, according to government data. Bilateral merchandise trade between the two countries stood around $10.6 billion in FY25, with labour-intensive sectors, such as textiles, leather, gems and jewellery, engineering goods and chemicals expected to be key beneficiaries.

EFTA: Pact comes into force

The Trade and Economic Partnership Agreement (TEPA) between India and the European Free Trade Association (EFTA) — comprising Switzerland, Norway, Iceland and Liechtenstein — came into force on October 1, 2025. It was signed in March 2024 and marks India’s first major trade pact with a European grouping.

Under the agreement, EFTA has offered tariff concessions covering 92.2 percent of its tariff lines, which together account for 99.6 percent of India’s exports to the bloc, while India has opened 82.7 percent of its tariff lines, covering 95.3 percent of EFTA’s exports. This significantly expands market access for Indian goods, such as textiles, leather and engineering products.

The pact also includes a binding commitment of $100 billion in investments over 15 years and aims to generate around 1 million direct jobs, reflecting its broader economic ambition beyond tariff cuts.

New Zealand: One of India’s fastest-concluded FTAs

India and New Zealand concluded an FTA in December 2025, with the government describing it as one of the fastest trade deals India has wrapped up with a developed economy.

Under the agreement, New Zealand has agreed to provide zero-duty access to all Indian exports, while India has offered tariff liberalisation on a majority of tariff lines, excluding sensitive agricultural products. The pact also covers services, including financial services, and is yet to be formally signed and brought into force.

Deals in the pipeline

Alongside agreements already signed or concluded, India continues to pursue trade negotiations and exploratory talks with several partners.

Negotiations are underway with Israel after terms of reference were signed to formally launch an FTA process. Discussions with the United States on broader trade issues and market access are ongoing, even as tariff talks remain sensitive.

India and Australia are engaged in talks for a second-phase comprehensive trade agreement that would follow up on the current interim pact and deepen liberalisation across goods and services.

Canada has also shifted into higher gear on bilateral economic engagement. Canada’s Prime Minister Mark Carney is likely to visit India in early March 2026 to advance talks on trade and other strategic cooperation, and both sides are working towards formal negotiations on a Comprehensive Economic Partnership Agreement (CEPA) in the year ahead — a process that had been stalled but has now resumed with a sense of urgency from both governments.

India is also reviewing and seeking to upgrade existing trade agreements with the Association of Southeast Asian Nations (ASEAN) and exploring wider economic cooperation with Gulf Cooperation Council (GCC) partners beyond current bilateral CEPAs.