India’s FTA Network: Updates in 2025

India’s foreign trade landscape in 2025 has been shaped by intensive negotiations and strategic updates to existing free trade agreements with major global partners. By year-end, India concluded three high-profile trade pacts with the United Kingdom, Oman, and New Zealand. It is also advancing exploratory discussions with countries across Africa and Latin America. Trade analysts widely regard 2025 as one of India’s most consequential years for economic diplomacy.

India Briefing provides the latest insights into India’s evolving trade negotiations and international economic partnerships.

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India made notable strides in advancing its trade agenda in 2025, securing major preferential trade agreements while initiating new negotiation dialogues with key emerging and developed economies. In 2025, India concluded three high-profile trade pacts:

1. India-UK Comprehensive Economic and Trade Agreement (CETA)
2. India-Oman Comprehensive Economic Partnership Agreement (CEPA)
3. India-New Zealand Free Trade Agreement (FTA) conclusion

As of 2025, India has 13 active FTAs. In parallel, the central government is reassessing its investment treaties and preferential trade frameworks.

This tracker provides an overview of India’s trade agreements, including existing pacts and ongoing negotiations.

Classification of India’s trade agreements

1. Free Trade Agreements: FTAs are legally binding treaties between two or more countries aimed at reducing or eliminating trade barriers, such as tariffs, quotas, and restrictions on imports & exports. These agreements often include provisions for trade facilitation, intellectual property rights, and investment protections.
2. Preferential Trade Agreements (PTAs): Unlike FTAs, PTAs offer selective tariff reductions on specific goods, rather than complete elimination. Some of the examples of such agreement include the India-MERCOSUR PTA and the India-Chile PTA.
3. Comprehensive Economic Partnerships/Cooperation Agreements (CEPAs/CECAs): These agreements go beyond FTAs by including provisions on investment, services, and regulatory cooperation. This includes the India-South Korea CEPA and the India-Singapore CECA.
4. Bilateral Investment Treaties (BITs): BITs focus on protecting and promoting investments between two countries by ensuring fair treatment and dispute resolution mechanisms. For examples, the India-UAE BIT and the India-Uzbekistan BIT.
5. Regional Trade Agreements (RTAs): These involve multiple countries within a specific region aiming for economic integration. Examples include the South Asian Free Trade Area (SAFTA) and the Asia-Pacific Trade Agreement (APTA).

India’s FTA updates in 2025

• New Zealand: On 22 December 2025, India and New Zealand announced the successful conclusion of negotiations on an FTA, following the final round of talks held on 10 December 2025. The agreement aims to double bilateral trade within the next five years. A key component of the pact is the Financial Services Annex, for which the negotiations began in May 2025 and culminated in a comprehensive framework of 18 articles. The annex is incorporated within the Trade in Services chapter and provides commitments that go beyond those under the General Agreement on Trade in Services (GATS).
• Oman: India also reinforced its economic engagement in the Gulf by signing a CEPA with Oman on 18 December 2025. Under the agreement, nearly 98 per cent of Indian exports gain duty-free access to the Omani market, while India has committed to notable tariff reductions on imports from Oman. The pact is expected to support sectors such as textiles, gems and jewellery, engineering goods, and food processing. According to India’s Union Minister of Commerce and Industry, Piyush Goyal, the agreement will come into force within the initial months of 2026.
• EFTA: Another key milestone in 2025 was the entry into force of the India–European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA) on 1 October 2025. Signed on 10 March 2024, the agreement links India with the four EFTA countries, i.e., Switzerland, Norway, Iceland, and Liechtenstein. It is designed to deepen trade and investment engagement with advanced European markets. Under the agreement, EFTA has committed to invest US$100 billion in India over a 15-year period. This includes US$50 billion in the first 10 years, followed by an additional US$50 billion in the subsequent five years. The investment is expected to generate around one million direct jobs in India. This is the first time India has secured such a large-scale investment commitment as part of an FTA.

• Latin America: In 2025, India intensified its trade and investment outreach to Latin America, signalling a strategic push to diversify partners and secure access to critical resources. India and Chile formally launched negotiations for CEPA in April, alongside discussions spanning agriculture, mining, science & technology, and climate cooperation. As part of this engagement, Chile invited Indian companies to participate in lithium mining bids.

  India also explored deeper economic ties with Venezuela, with discussions extending beyond hydrocarbons to include mining, pharmaceuticals, and automobiles.

  On 16 October 2025, India and Brazil announced a joint declaration to expand the India–MERCOSUR PTA agreement, especially within the Mercosur bloc of Brazil, Argentina, Uruguay, and Paraguay. India and Brazil have agreed that the PTA will be broadened to include both tariff and non-tariff issues, allowing more trade to benefit from preferential access.

• Eurasian Economic Union (EAEU): India has formalised the terms for FTA negotiations with the EAEU as part of its broader strategy to diversify trade partnerships amid challenges in relations with the US. The EAEU comprises Armenia, Belarus, Kazakhstan, the Kyrgyz Republic, and Russia. The Terms of Reference (ToR) were signed in Moscow on 20 August 2025 by India’s additional secretary in the Department of Commerce and deputy director of the Trade Policy Department at the Eurasian Economic Commission (EEC). The central government noted that the bilateral trade between India and the EAEU reached US$69 billion in 2024, reflecting a 7 per cent year-on-year increase. With the bloc’s combined GDP of US$6.5 trillion, the proposed FTA is expected to widen market access for Indian exporters. This could enable diversification into new sectors and regions and create substantial opportunities for MSMEs.

• The UK: The India–UK FTA was officially signed and formalised on 24 July 2025. India’s Prime Minister Narendra Modi’s visit to the UK, where he held bilateral discussions with UK Prime Minister Keir Starmer. The trade pact, finalised on 6 May 2025, is projected to enhance bilateral trade between the two countries by an estimated US$34 billion annually.
• Switzerland: As per reports published on 12 July 2025, Switzerland has formally ratified the Trade and Economic Partnership Agreement (TEPA) with India, marking the completion of the ratification process by all four member states of the EFTA. This comes after nearly 16 years of negotiations and paves the way for the agreement to come into effect by October 2025. The Swiss ambassador Maya Tissafi has described the development as a “significant milestone” in strengthening Indo-Swiss relations. On 10 June 2025, India’s union minister of commerce concluded his two-day visit to Switzerland. The visit focused on advancing the implementation of the TEPA, signed earlier in 2025 between India and the EFTA. 

• Kyrgyzstan: On 5 June 2025, India’s union finance minister and the foreign minister of the Kyrgyz Republic signed the protocol and exchanged the Instrument of Ratification for the Bilateral Investment Treaty (BIT) between India and Kyrgyzstan in New Delhi. Originally signed on 14 June 2019, in Bishkek, the treaty officially enters into force from 5 June 2025. It supersedes the earlier BIT that came into effect on 12 May 2000.

• The US: India and the US are expected to finalise a trade deal soon, aiming to reduce tariffs and help lower the US trade deficit, according to US Commerce Secretary Howard Lutnick. On 3 June 2025, Lutnick noted that, while India maintains protectionist tariffs, both sides have found common ground. He emphasised that early agreements tend to be more favourable and assured the US would be flexible if India reduced its tariffs. On 20 May 2025, the commerce and industry minister met with Lutnick in Washington, D.C., to accelerate discussions on the initial phase of the proposed India-US bilateral trade agreement. This marks his second visit to Washington for trade talks with the US in 2025, following an earlier round in March.

  In a statement issued on 29 April 2025, the union commerce minister confirmed that officials from India’s Department of Commerce and the Office of the US Trade Representative met in Washington, D.C., between 23 and 25 April 2025. Since the US remains one of India’s top export destinations, securing favourable trade terms is a key priority for India.

• European Union: India and the EU concluded the 11th round of negotiations on the proposed draft of the FTA on 18 May 2025. As per a Times of India report, both sides have agreed to pursue a two-stage approach to finalise the deal. On 1 May 2025, India and the EU reaffirmed their target to conclude FTA negotiations by the end of 2025. India’s Union Commerce Minister held a meeting with the EU Commissioner for Trade and Economic Security Maros Sefcovic in Brussels on 1 May to discuss the progress on the FTA negotiations. Sefcovic said that the EU is committed to taking it to the next level by securing a commercially meaningful agreement, which opens up the markets for both goods and services. 
• Chile: On 8 May 2025, India and Chile signed the Terms of Reference (ToR) for a CEPA. As per the announcement, the India-Chile CEPA aims to build upon the existing PTA between the two countries and seeks to encompass a broader range of sectors. This includes key sectors such as digital services, investment promotion and cooperation, MSMEs, critical minerals, etc.
• United Kingdom: India and the UK finalised the FTA after over three years of negotiations. Under the finalised FTA, announced on 6 May 2025, Indian businesses will enjoy nearly tariff-free access to British markets. Additionally, India will benefit from the UK’s FTA commitments in various service sectors, including IT/ITeS, financial, professional, and educational services. One of the major highlights of the agreement is the Double Contribution Convention. Under this, Indian professionals working temporarily in the UK will benefit from a three-year exemption from social security contributions.

• Chile: On 1 April 2025, India-Chile announced the launch of negotiations for a CEPA to enhance cooperation across trade, science and technology, critical minerals, health, agriculture, climate change, and cultural exchanges. Chile has invited Indian companies to bid for lithium deposits, a strategic move to diversify its foreign investment in the mining sector. Additionally, both countries are strengthening ties in mining and mineral exploration. A roundtable discussion, organised by the International Copper Association India, focused on advancing mineral exploration, sustainable mining practices, and value-added processing. Per the announcement, India and Chile have agreed to explore renewing their Memorandum of Understanding (MoU) on geology and mineral resources, particularly in critical minerals and green technology.
• New Zealand: India and New Zealand have officially resumed negotiations for a comprehensive FTA after a decade-long pause, aiming to strengthen economic ties and expand trade opportunities. The decision was announced on 16 March 2025, following a meeting between India’s Commerce and Industry Minister, Piyush Goyal, and New Zealand’s Trade Minister Todd McClay. The meeting took place ahead of a bilateral discussion between Prime Minister Modi and New Zealand Prime Minister Christopher Luxon. With bilateral trade surpassing US$1 billion during April–January 2025, the renewed FTA talks are expected to open new avenues for businesses and consumers.
• United States: India and the U.S. aim to double bilateral trade to US$500 billion by 2030. On 17 February 2025, India’s Union Minister of Commerce and Industry Piyush Goyal said that the two countries are committed to negotiating a strong trade agreement within the next 6-8 months.
• United Kingdom: FTA negotiations between India and the UK are set to resume in early 2025 as per British Prime Minister Keir Starmer’s update to the UK Parliament on 21 November 2024. As many as 14 rounds of negotiations have taken place between both countries till now. The India-UK FTA negotiations began in January 2022.
• Oman: As of February 2025, India and Oman are actively advancing negotiations on a CEPA. India’s union minister of commerce visited Muscat on 27-28 January 2025 to discuss the CEPA with Oman’s minister of commerce, industry, and investment promotion. Formal CEPA negotiations commenced in November 2023, with significant progress made by January 2024.
• Association of Southeast Asian Nations (ASEAN): As of February 2025, India and ASEAN are actively engaged in reviewing the ASEAN-India Trade in Goods Agreement (AITIGA), originally signed in 2009. The fifth Joint Committee meeting is scheduled to take place in February 2025, in Jakarta, Indonesia.
• Qatar: Currently, India and Qatar are actively exploring the possibility of an FTA to enhance bilateral trade and investment. During a two-day visit to New Delhi (18-19 February 2025), Qatari Emir Sheikh Tamim bin Hamad Al-Thani and Indian Prime Minister Modi discussed strategies to double trade to US$28 billion within the next five years.

Other India trade negotiations to watch in 2025

India-Canada CEPA: Negotiations were re-launched in March 2022 during the fifth Ministerial Dialogue on Trade & Investment. However, as of September 2023, Canada has paused these talks, with both countries agreeing to decide on their resumption mutually.

India-Gulf Cooperation Council (GCC) FTA: India and the GCC signed a Framework Agreement on Economic Cooperation in 2004 to strengthen trade ties. FTA negotiations resumed in November 2022, and by January 2025, the GCC expressed intentions to initiate formal discussions within the year. The GCC member countries are Saudi Arabia, the UAE, Qatar, Kuwait, Oman, and Bahrain.

Status of India’s bilateral investment treaties

BITs aim to promote and protect investments between India and its partner countries.

In February 2025, India’s finance minister announced plans to revamp the current Model BIT to make it more investor-friendly, aiming to attract increased foreign investment.

India is negotiating new BITs with the UK, Saudi Arabia, Qatar, and the EU and renegotiating existing ones to align with contemporary economic realities and policy objectives.

Most of India’s earlier BITs (previously known as BIPA (Bilateral Investment Promotion and Protection Agreement)) were terminated following the adoption of a new Model BIT in 2016. This model emphasises a balance between investor rights and the host state’s obligations.

Notable BITs currently in force

1. India-UAE bilateral investment treaty: Signed in Abu Dhabi in February 2024, this treaty came into effect on 31 August 2024. Ajay Seth, Secretary of the Department of Economic Affairs (DEA), said the BIT with the UAE provides safeguards for foreign portfolio investors. It also includes entity-based protection and exemplifies the shift toward more investor-friendly investment norms.
2. India-Uzbekistan bilateral investment treaty: Signed in 2024, this treaty aims to enhance investment flows between the two nations.

In addition to these, India has active BITs with several countries, including:

• Bangladesh: Fostering investment cooperation between the neighbouring countries.
• Belarus: Aiming to protect and promote mutual investments.
• Kyrgyzstan: Enhancing economic collaboration through investment protection.
• Thailand: Strengthening economic ties and investment flows.
• Trinidad and Tobago: Encouraging bilateral investments and economic cooperation.

India’s FTA network: Existing trade agreements

India has established 13 FTAs with various countries and regional blocs. These agreements aim to strengthen the country’s trade relations, promote economic growth, and facilitate market access.

1. SAFTA – implemented in 2006 among SAARC nations to reduce tariffs.
2. India-Sri Lanka FTA (ISFTA) – in effect since 2000, promoting bilateral trade.
3. India-Nepal Treaty of Trade – provides duty-free access to primary products.
4. India-Bhutan Agreement on Trade, Commerce, and Transit – eliminates tariffs on a range of goods.
5. India-Thailand FTA – initiated in 2004 under the Early Harvest Scheme.
6. India-Singapore CECA – covers trade, services, and investment.
7. India-Malaysia CECA – effective from 2011, covering trade, services, and investments.
8. India-Japan CEPA – eliminates tariffs on a vast majority of goods since 2011.
9. India-South Korea CEPA – reduces tariffs and promotes trade.
10. India-ASEAN FTA – established in 2010 for goods, expanded in 2014 for services.
11. India-Mauritius CECPA – signed in 2021, India’s first trade agreement with an African nation.
12. India-UAE CEPA – implemented in 2022, boosting bilateral trade.
13. India-Australia ECTA – signed in December 2022, promoting key sectors like agriculture and minerals.

India’s Generalised System of Preferences (GSP)

Under the GSP, India benefits from preferential tariff treatment under various schemes provided by different countries, facilitating duty-free or reduced tariff access for Indian exports.

Provider	Beneficiaries	Entry into force
India	Duty-Free Tariff Preference Scheme for Least Developed Countries (LDCs): 46 countries	13 August 2008
United Kingdom	Developing Countries Trading Scheme – 65 countries, including India	19 June 2023
Armenia	GSP – 153 countries, including India	10 October 2016
Australia	GSP – 177 countries, including India	1 January 1974
European Union (EU)	GSP – 88 countries, including India	1 July 1971
Japan	GSP – 130 countries, including India	1 August 1971
Kazakhstan	GSP – 153 countries, including India	10 October 2016
Kyrgyz Republic	GSP – 153 countries, including India	10 October 2016
New Zealand	GSP – 140 countries, including India	1 January 1972
Norway	GSP – 122 countries, including India	1 October 1971
Russian Federation	GSP – 153 countries, including India	10 October 2016
Switzerland	GSP – 123 countries, including India	1 March 1972

 India’s Preferential Trade Agreements

• SAARC Preferential Trading Agreement (SAPTA) – includes Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka.
• Asia-Pacific Trade Agreement (APTA) – previously known as the Bangkok Agreement, signed in 1975 with Bangladesh, China, India, South Korea, Laos, and Sri Lanka.
• India-MERCOSUR PTA – signed with Brazil, Argentina, Uruguay, and Paraguay in 2004; effective from June 1, 2009.
• India-Afghanistan PTA – signed on 6 March 2003.
• India-Chile PTA – strengthening economic ties with Latin America.

Some proposed regional trade agreements

• Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) FTA – a proposed FTA involving a grouping of countries in South Asia and Southeast Asia. This includes countries like Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, and Thailand. The proposed FTA aims to strengthen regional economic integration.
• India-SACU PTA – a proposed agreement between India and the Southern African Customs Union. This includes Southern African nations such as Botswana, Lesotho, Namibia, South Africa, and Eswatini.

(This article was originally published on 20 February 2025 and was last updated on 23 December 2025.)