India’s achievements in Free Trade Agreements for the year 2025-26
In this note
Practice
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1. At a Glance
- Nine operational/concluded FTAs spanning 38 countries position India as a "modern, new-generation FTA architect" by FY 2025-26 [1][5].
- Cluster of high-impact deals in a single year: EFTA TEPA in force, UK CETA signed, Oman CEPA signed, NZ FTA & EU FTA concluded [1][2][3][4][6].
- Examinable for GS-II (bilateral groupings) and GS-III (Indian economy, external sector); useful for Prelims static-cum-current bullets.
2. Why in the News
- PIB release dated 06 March 2026 summarising India's FTA achievements for FY 2025-26 [1].
- India–EFTA TEPA entered into force on 01 October 2025, the first Indian FTA to embed a binding investment-and-jobs commitment [2][5].
- India–UK CETA signed 24 July 2025; India–Oman CEPA signed 18 December 2025; India–New Zealand FTA announced 22 December 2025; India–EU FTA announced 27 January 2026 [1][3][4][6].
3. Background & Evolution
- India–Mauritius CECPA (2021) — first FTA with an African nation [1].
- India–UAE CEPA, May 2022 — first West-Asia CEPA [1].
- India–Australia ECTA, December 2022 — interim agreement [1].
- India–EFTA TEPA signed 10 March 2024, in force 01 October 2025 (Switzerland, Norway, Iceland, Liechtenstein) [1][2][5].
- India–UK CETA, signed 24 July 2025 by Piyush Goyal & Jonathan Reynolds [3].
- India–Oman CEPA, December 2025; India–NZ FTA, 22 Dec 2025; India–EU FTA, 27 Jan 2026 [1][4][6].
4. Core Static Facts
- Nodal Ministry: Ministry of Commerce & Industry, Department of Commerce [1].
- Total FTAs: 9 spanning 38 partner countries [1].
- EFTA bloc = Switzerland + Norway + Iceland + Liechtenstein [2][5].
- EFTA TEPA Article 7.1: USD 50 bn FDI in 10 years + USD 50 bn in next 5 years = USD 100 bn over 15 years; 1 million direct jobs; explicitly excludes FPI [2][5].
- UK CETA tariff coverage: UK eliminates duties on 99% of India's exports by value; India opens 89.5% of tariff lines / 91% of UK exports [3].
- UK CETA sectoral tariff lines: Engineering goods 1,659 (17.0%); Agriculture 1,437 (14.8%); Textiles 1,143 (11.7%); Food processing 985 (10.1%) [3].
- Oman CEPA: Zero-duty on 98.08% of Oman's tariff lines, covering 99.38% of India's export value [6].
- EU FTA: market access for >99% of Indian exports by trade value [6].
- CETA document set: 29 chapters released publicly [3].
5. Multi-Dimensional Analysis
Economic
- TEPA's binding investment-linked clause is a structural break from tariff-only FTAs; targets USD 100 bn FDI and 1 million jobs [2][5].
- UK CETA opens duty-free access on engineering, textiles, leather, gems & jewellery — labour-intensive export sectors [3].
Geopolitical / Strategic
- EU FTA (27 Jan 2026) is India's largest by trading-bloc size; complements India–EU Trade & Tech Council [6].
- Oman CEPA deepens GCC outreach after UAE CEPA, building India's Gulf trade architecture [6].
- NZ FTA + Australia ECTA consolidate Indo-Pacific trade pillar without joining RCEP [1].
Legal / Constitutional
- FTAs are negotiated under executive treaty-making power (Article 73); ratification does not require parliamentary statute, but tariff changes operate via the Customs Tariff Act, 1975 notifications [1].
Administrative
- Implementation handled via DGFT notifications, rules of origin (CAROTAR 2020), and EFTA Desk institutional mechanism [5].
6. Recent Developments (last 12-18 months)
- 10 Mar 2024 – TEPA signed [2][5].
- 24 Jul 2025 – India–UK CETA signed [3].
- 01 Oct 2025 – India–EFTA TEPA entered into force [2][5].
- 18 Dec 2025 – India–Oman CEPA signed [6].
- 22 Dec 2025 – India–New Zealand FTA announced [1][6].
- 27 Jan 2026 – India–EU FTA announced [1][6].
- 06 Mar 2026 – PIB consolidated achievements release [1].
7. Prelims Hooks
- India had 9 FTAs covering 38 countries as of FY 2025-26 [1].
- EFTA = 4 countries: Switzerland, Norway, Iceland, Liechtenstein [2].
- TEPA Article 7.1: USD 100 bn investment + 1 million jobs target [2][5].
- TEPA's investment clause excludes Foreign Portfolio Investment [2].
- India–UK CETA signed 24 July 2025 (not 2024) [3].
- UK eliminated tariff on 100% of textile & apparel lines (previously up to 12% duty) [3].
- Oman CEPA: zero-duty on 98.08% of Oman tariff lines [6].
- India–Mauritius CECPA (2021) was India's first FTA with an African country [1].
- India–UAE CEPA signed May 2022 [1].
- India–Australia ECTA implemented December 2022 [1].
- India–EU FTA announced on 27 January 2026 (Republic Day eve) [1].
- Nodal ministry: Ministry of Commerce & Industry [1].
8. Mains Relevance
- GS-II: India and its Neighbourhood / Bilateral, Regional & Global Groupings affecting India's interests.
- GS-III: Indian Economy — effects of liberalisation; external sector.
- Possible question stems:
- "Discuss how the India–EFTA TEPA marks a paradigm shift from traditional tariff-centric FTAs to investment-linked trade compacts." (GS-III)
- "Examine the strategic rationale behind India's 2025-26 cluster of FTAs with developed-economy partners (UK, EU, EFTA)." (GS-II)
- "Critically evaluate the trade-offs India faces in opening tariff lines under the India–UK CETA." (GS-III)
9. Related Topics to Study Next
- WTO & MFN principle — context for preferential FTAs.
- CAROTAR 2020 & Rules of Origin — enforcement instrument.
- RCEP and India's 2019 withdrawal — comparative choice.
- India–EU Trade & Technology Council (TTC) — complements EU FTA.
- Gulf Cooperation Council (GCC) — context for UAE & Oman CEPAs.
- PLI Schemes — domestic competitiveness complement to FTA access.
- Indo-Pacific Economic Framework (IPEF) — parallel plurilateral track.
- Bilateral Investment Treaty (BIT) Model 2016 — TEPA's investment chapter linkage.
10. Common Errors / Trap Areas
- Confusing EFTA (4 countries, non-EU) with EU (27 member states) — these are separate agreements.
- TEPA signed in 2024 but entered into force 01 Oct 2025 — both dates are testable, do not conflate.
- Australia ECTA (2022) is interim; the comprehensive CECA is still under negotiation — do not call ECTA a "CEPA".
- India–Mauritius is CECPA (2021), not CEPA; UAE & Oman are CEPAs; UK is CETA; Australia is ECTA — nomenclature trap.
- TEPA investment commitment is an aim/target linked to FDI (not FPI), not a guaranteed inflow.
Sources
- 1India's achievements in Free Trade Agreements for the year 2025-26pib.gov.in · tier 1
- 2India-EFTA TEPA to come into effect on 01 October 2025pib.gov.in · tier 1
- 3India–UK CETA (PIB Press Note 154945)pib.gov.in · tier 1
- 4India – New Zealand Free Trade Agreement (PIB Note 156654)pib.gov.in · tier 1
- 5India-EFTA Trade Pact: Boosting $100 Billion Investment and 1 Million Jobspib.gov.in · tier 1
- 6India's Trade Partnerships Powering Global Integration and Growthpib.gov.in · tier 1
At the end · practice MCQs
12 questions on this item
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