Over the past five years, India has signed five Free Trade Agreements, and discussions are ongoing for additional agreements, as informed by Jitin Prasada to the Parliament.
India-UK Free Trade Agreement Signed: A New Era of Trade and Economic Cooperation
In a significant move for international trade, India officially signed the India-UK Comprehensive Economic and Trade Agreement (CETA) on July 24, 2025. This agreement, pending ratification and entry into force processes, promises to open up new opportunities for bilateral trade between the two nations.
The India-UK FTA covers a wide range of sectors, with nearly 99% of Indian exports to the UK set to receive duty-free access. This includes key industries such as textiles, clothing, leather, gems and jewelry, marine products, agriculture (spices, fruits, vegetables), manufacturing, engineering goods, chemicals, and pharmaceuticals.
The implementation of this agreement is expected to result in significant tariff eliminations and non-tariff barrier reductions, boosting exports and bilateral trade substantially over the long term.
While the India-UK FTA is the only major Free Trade Agreement (FTA) signed by India in the last five years, there are several other notable trade agreements that have been signed or are in the works.
Notable Trade Agreements
- The India-UAE Comprehensive Economic Partnership Agreement (CEPA), signed in 2022, has led to a significant growth in Foreign Direct Investment. Negotiations for a Comprehensive Economic Partnership Agreement with Oman have also been concluded by India.
- The India-Mauritius Comprehensive Economic Cooperation and Partnership Agreement (CECPA) was implemented in 2021, maintaining a consistent trade surplus.
- India is in advanced talks for several other agreements, including the India-EU FTA, India-Australia Comprehensive Economic Cooperation Agreement (CECA), India-Sri Lanka Economic and Technology Cooperation Agreement, India-Peru FTA, India-Chile CEPA, India-New Zealand FTA, and a bilateral trade agreement with the United States.
Ongoing Negotiations
Ongoing negotiations have been reported with the European Union and New Zealand, but no signed FTAs as of now. India is also reviewing and upgrading older trade pacts such as the ASEAN-India Trade in Goods Agreement (2009) and the India-Korea CEPA (2009).
The India-European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA) was signed in 2024 and is expected to be implemented later this year. The India-Australia Economic Cooperation and Trade Agreement (ECTA) was also signed in 2022.
In summary, while the India-UK FTA is the most recent major FTA, India has been actively engaged in trade negotiations and agreements with various countries. The implementation of these agreements is expected to foster greater economic cooperation and trade between India and its partners.
[1] India-UK Trade Agreement
[2] India-UK Trade Agreement Explained
[3] UK-India Trade Deal: What's in it for India?
[4] India-EU FTA Talks Stuck Over Farm Subsidies, Data Privacy
[5] India-UK Free Trade Agreement: What's in it for India?
- The India-UK Free Trade Agreement, signed in 2025, is set to open up new opportunities for bilateral trade, particularly in sectors like textiles, agriculture, manufacturing, engineering, and pharmaceuticals.
- Despite the India-UK FTA being the most recent major Free Trade Agreement signed by India, ongoing negotiations are being held with countries such as the European Union, New Zealand, and the United States for potentially broader economic cooperation.
- The implementation of the India-UK FTA is anticipated to boost exports and bilateral trade substantially over the long term, resulting in significant tariff eliminations and non-tariff barrier reductions.
- Trade talks between India and the European Union for a Free Trade Agreement have encountered obstacles, specifically over farm subsidies and data privacy issues, which are yet to be resolved.
