India is steadily strengthening its global trade footprint through bilateral and multilateral Free Trade Agreements (FTAs). With 13 active FTAs and several more under negotiation, India’s trade diplomacy in 2025 is focused on boosting economic collaboration, reducing dependency on traditional markets, and unlocking growth opportunities across strategic sectors.
India-New Zealand FTA: Renewed Momentum for Trade Diversification
India and New Zealand have resumed comprehensive FTA talks after a long pause. This agreement is expected to deepen economic ties between the two countries significantly.
Latest Highlights:
58% of exports are already exempt from tariffs, with the ongoing reinstatement of FTA negotiations providing further benefits and opportunities for exporters.
Discussions focus on collaboration in food processing, pharmaceuticals, tourism, horticulture, and renewable energy.
The agreement is projected to increase bilateral trade tenfold in the next decade.
New Zealand seeks agro-product access, while India aims to ease professional mobility and product market access.
India-US Trade Agreement: Towards a Strategic Economic Partnership
India and the United States are in advanced discussions to finalise the initial phase of a broader trade agreement by July 2025.
Key Developments:
The bilateral trade target is expected to double from $191 billion to $500 billion by 2030.
Talks focus on tariff reductions, industrial goods, labour-intensive exports, and investment facilitation.
The 90-day pause on the 26% reciprocal tariff is due to expire on July 9, 2025. India is pushing for permanent exemption.
Despite tariff increases on steel and aluminium, both sides remain committed to resolving trade concerns diplomatically.
India-European Union FTA: Balancing Concessions and Market Access
India and the EU are working to conclude an early agreement by July 2025, emphasising a balanced and phased negotiation structure.
Strategic Focus Areas:
The EU requests tariff concessions on automobiles, spirits, meat, and medical devices.
India is negotiating for export advantages in garments, pharma, steel, petroleum, and electrical machinery.
Discussions include IPR (Intellectual Property Rights), non-tariff barriers, and public procurement.
India-EFTA Trade Agreement: Aiming for Implementation in 2025
India is nearing the implementation of its FTA with the European Free Trade Association (EFTA), which comprises Switzerland, Iceland, Norway, and Liechtenstein.
Expected Benefits:
Projected to generate $100 billion in investments and 1 million jobs over 15 years.
Key concessions include reduced tariffs on Swiss watches and chocolates.
Cooperation will span semiconductors, clean hydrogen, defence, pharmaceuticals, and green growth.
India-Australia CECA: Building on the ECTA Foundation
Following the success of the ECTA implemented in December 2022, both nations are advancing towards a Comprehensive Economic Cooperation Agreement (CECA).
Key Points:
India is among the top 15 investors in Australia.
CECA will focus on clean energy, agribusiness, education and skills, and tourism.
The deal will deepen India’s access to Australia’s renewable energy and agri-sectors.
India-UK FTA: Transforming Bilateral Trade
“The India-UK Free Trade Agreement is set to reshape the trade relations, increase investments, and innovation across sectors such as automobile, textile, service sector, defence, and jewellery.
Status:
The final terms of the agreement are being negotiated.
Click here to view the full update.
India-Gulf FTAs: Strengthening Regional Trade in the Middle East
India is pursuing comprehensive trade deals with several Gulf nations, including Oman, Qatar, and the broader GCC.
Recent Updates:
Oman: The India-Oman CEPA negotiations are nearing a conclusion, covering sectors such as petroleum, marine vessels, aircraft, aluminum, and agriculture.
Qatar: India and Qatar target $28 billion in trade over five years through FTA negotiations.
Saudi Arabia: India is improving port connectivity and supply chain links through bilateral cooperation.
GCC: India has an existing FTA with the UAE and is working towards a broader agreement across trade, energy, and investment with GCC nations.
India-Netherlands: Laying the Groundwork for a Future FTA
India and the Netherlands are fostering deeper economic cooperation through sectoral partnerships.
Progress Indicators:
Discussions under the Joint Trade and Investment Committee are ongoing.
Sectors of collaboration include agriculture, logistics, healthcare, and technology.
The growing bilateral engagement signals long-term FTA potential.
India-Chile CEPA: Enhancing Cooperation in Critical Minerals
India and Chile launched negotiations for a Comprehensive Economic Partnership Agreement in April 2025.
Key Focus Areas:
Joint efforts in lithium mining and mineral exploration.
Advancing climate change cooperation and sustainable mining practices.
Plans to renew the MoU (Memorandum of Understanding) on geology and mineral resources to build a long-term trade framework.
India-Belgium: Advancing EU-India FTA Collaboration
India and Belgium are intensifying trade talks under the larger EU-India FTA framework.
Current Engagement:
Bilateral trade stood at $15.07 billion in FY 2023–24.
Belgium has invested $3.94 billion in India, with $1.1 billion in the past year alone.
Discussions address non-tariff barriers and boost cooperation in clean energy, defence, semiconductors, and pharmaceuticals.
India-Canada: Diplomatic Reboot and FTA Revival
India and Canada are eyeing a restart of trade negotiations under the new leadership in Canada.
Timeline:
Talks for an Early Progress Trade Agreement (EPTA) began in March 2022.
The process paused in September 2023 due to diplomatic tensions.
With a new Canadian Prime Minister in office (April 2025), discussions are expected to resume soon.
Conclusion
India’s evolving FTA framework reflects a calculated strategy to diversify markets, attract investment, and build sector-specific synergies with global economies. From North America to Europe and the Middle East, these agreements are poised to boost India’s trade resilience and unlock new growth frontiers.
As negotiations progress and agreements take shape, stakeholders in manufacturing, services, and infrastructure can expect significant benefits. These include wider market access, stronger competitiveness, and more cross-border opportunities. For businesses considering India Company incorporation, this is an ideal time to tap into emerging global trade dynamics.
