Crux: Latest four trade agreements India signed in past 180 days.
- TheSoulGuide
- 6 hours ago
- 5 min read
India has entered an active phase of trade diplomacy, signing and concluding multiple high-impact free trade agreements (FTAs) and comprehensive economic partnerships in recent years. These agreements are designed to integrate India more deeply into global value chains, boost exports, attract investment, and strengthen supply chain resilience. Recent landmark agreements include the European Union trade pact (2026), the New Zealand FTA (2025), and the CEPA with Oman (2025), along with earlier deals with the United Arab Emirates and Australia. These agreements collectively expand preferential market access across Europe, the Gulf, and the Indo-Pacific. Lets see some recent agreements.
India–European Union Free Trade Agreement (FTA)
The India–European Union Free Trade Agreement, signed on 27 January 2026 between the India and the European Union (EU), is one of India’s most comprehensive trade pacts — the result of nearly two decades of negotiations. This agreement aims to progressively liberalize trade and investment between the two parties by reducing or eliminating tariffs on a vast majority of goods and expanding market access in services and regulatory cooperation. Under the pact, India is expected to cut duties on many imported EU products, including industrial goods, machinery, vehicles and processed foods, while the EU will largely eliminate tariffs on Indian exports such as textiles, leather, chemicals and other manufactured goods. The agreement also includes provisions on customs facilitation, services trade liberalization, and measures to strengthen economic ties across sectors like technology and professional services. While this FTA has been signed politically, it still must be approved by the European Parliament and Indian domestic authorities before it formally enters into force — potentially in early 2027 — and is widely described as a strategic, large-scale framework to integrate India more deeply into global manufacturing and service supply chains.
Under the FTA, tariffs on the vast majority of traded goods will be cut or removed. For Indian exporters, the EU has agreed to eliminate duties on approximately 90 % of tariff lines immediately and phase out additional tariffs over time, which translates to zero-duty access for more than 99 % of the value of Indian exports to the EU. Key labour-intensive export sectors — including textiles, apparel, leather, footwear, gems and jewellery, marine products, and various manufactured goods — stand to benefit significantly from this preferential access. On the other side, India will reduce duties on a large portion of EU imports, offering immediate duty-free access on around 49.6 % of tariff lines and phased tariff elimination on another 39.5 % over 5–10 years, while protecting sensitive sectors like dairy and certain agricultural products.
Product / Category | Current (Before FTA) | FTA Tariff (Post-Entry Into Force / Phased) | Time Frame | Notes (Sources) |
Marine products | ~26% | 0 | Immediate | |
Footwear & Leather | ~17% | 0 | Immediate | |
Apparel & Textiles | 11–12% | 0 | Immediate | |
Chemicals | Up to ~22% | 0% for vast majority | Immediate | |
Gems & Jewellery | ~4% | 0 | Immediate | |
Medical instruments & appliances | ~6.7% | 0% (99% of lines) | Immediate | |
Electronics | ~14% | 0% (99.6%) | Immediate | |
Base metals / Iron & steel | Up to ~22% | 0 | Phased (mostly 5–10 yrs) | |
Machinery | Up to ~44% | 0 | Phased (5–10 yrs) | |
Pharmaceuticals | ~11% | 0 | Phased (5–10 yrs) | |
Automobiles (cars) | Up to ~110% | ~10% after reductions (subject to quotas) | Phased | |
Wine & Spirits (EU→India) | ~150% | ~75% initially → ~20–30% | Phased (5–10 yrs) | |
Olive oil (EU→India) | ~45% | 0 | 5 yrs | |
Processed foods (EU→India) | Varies | 0 | ~5 yrs |
India–New Zealand Free Trade Agreement (FTA)
On 22 December 2025, India and New Zealand concluded their Free Trade Agreement after negotiations that began earlier in 2025. This pact is notable for being one of India’s fastest negotiated FTAs in recent memory. Under the agreement, all Indian exports to New Zealand will receive duty-free access, meaning tariffs on 100 % of Indian export lines into New Zealand will be eliminated, providing Indian exporters with significant competitiveness in sectors such as textiles, apparel, leather, engineering goods, pharmaceuticals and processed foods. In reciprocity, India agreed to offer liberalised market access on approximately 95 % of imports from New Zealand, although certain agricultural and sensitive items such as dairy, onions, sugar, edible oils and animal fats are excluded or subject to phased concessions to protect domestic producers. Beyond tariffs, New Zealand has committed to a significant US $20 billion investment over 15 years in India, covering areas such as infrastructure, technology and renewable energy, alongside enhanced cooperation on services trade and mobility for skilled professionals and students. The FTA is also expected to serve as a platform for deeper economic cooperation in education, technical services and agricultural productivity initiatives.
India–Oman Comprehensive Economic Partnership Agreement (CEPA)
The Comprehensive Economic Partnership Agreement (CEPA) between India and Oman, signed on 18 December 2025, marks a key milestone in India’s engagement with the Gulf region. Under this agreement, Oman has granted zero-duty access on over 98 % of its tariff lines — covering nearly all Indian exports by value — including major labour-intensive sectors such as gems and jewellery, textiles, leather, footwear, plastics and engineering products. In return, India has committed to liberalising duties on roughly 78 % of its tariff lines, covering close to 95 % of Omani imports by value, facilitating bilateral trade flows. Besides trade in goods, the CEPA enhances cooperation in services, expands market access for Indian professionals, improves mobility provisions, and creates a framework for deeper investment ties. Given Oman’s strategic location near the Strait of Hormuz and its role as a gateway for trade into the broader Middle East and Africa, this agreement is seen as both a trade and geopolitical partnership that will strengthen India’s commercial footprint, support supply chain resilience, and catalyse new business opportunities across sectors.
India–United States Interim Trade Framework
India and the United States have recently reached an interim trade agreement framework (reported in early February 2026), which sets the stage for a broader bilateral trade deal expected to be concluded soon. While this framework is not a fully negotiated FTA in the traditional sense, it represents a significant shift in India–US economic relations after a period of high U.S. tariffs on Indian exports. Under this interim agreement, the U.S. is reducing tariffs on a wide range of Indian goods — in some cases from punitive levels previously imposed down to around 18 % — which offers Indian exporters enhanced access to the world’s largest consumer market. In return, India has agreed to liberalise tariffs on selected U.S. industrial and agricultural imports, streamline trade barriers and commitments to increase two-way purchases of goods and services, including energy and technology products, over a multi-year period. The interim deal addresses longstanding issues such as non-tariff barriers and market access, signalling a renewed willingness on both sides to deepen trade and investment ties. Although this framework is subject to further negotiations and formalisation by March 2026, it represents a strategic economic milestone that could reshape bilateral commerce and support stronger economic cooperation going forward.
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