Handshakes To High-Stakes: From India-US Trade Deal To EU FTA- List Of India's Landmark Agreements

New Delhi: In a historic late-night breakthrough on February 2, US President Donald Trump and Prime Minister Narendra Modi finalised a landmark trade deal that effectively ends months of escalating economic friction.  

Following a high-stakes telephone call, President Trump announced that the United States will slash total tariffs on Indian goods from a punitive 50% to 18%, a move that includes the immediate removal of the 25% "Russian oil penalty"  duty. 

In return, India has reportedly committed to phasing out its own trade barriers on American products and significantly boosting its imports of US energy, technology, and agriculture. 

Describing the pact as a "win-win," PM Modi hailed the decision as a massive boost for the "Make in India" initiative, solidifying India’s position as a key strategic partner in Washington's new global trade order.

"Next-Gen" trade agreements

In addition to the high-profile US breakthrough, India has successfully transformed its economic landscape through a rapid-fire series of "Next-Gen" trade agreements signed between 2021 and 2026. 

The crown jewel of this strategy is the India-EU Free Trade Agreement (signed Jan 27), often called the "Mother of All Deals," which provides duty-free access for nearly all Indian exports to the 27-nation bloc. 

This follows a highly productive 2025, where New Delhi finalized landmark pacts with the United Kingdom, Oman, and New Zealand. 

These recent victories add to a growing portfolio that includes the EFTA (Switzerland, Norway, Iceland, Liechtenstein) deal with its historic $100 billion investment pledge, and comprehensive partnerships with Australia and the UAE. By pivoting toward these modern, high-standard agreements, India has moved beyond its older regional deals (like those with ASEAN, Japan, and South Korea) to firmly embed itself in the global supply chains of the future.

In a whirlwind of "fast-track diplomacy," India has transformed from a traditionally protectionist economy into a global trade powerhouse. 

Between 2021 and early 2026, New Delhi has successfully negotiated and signed a string of landmark deals, effectively ending a decade-long drought of Free Trade Agreements (FTAs). 

Here is a list of the landmark agreements India has finalized in this new era of economic diplomacy.

The "Big Four" Recent Signings

In just the last few months, India has rapidly concluded negotiations with major Western and Middle Eastern partners:

1. The India-EU "Mother of All Deals"
Signed on January 27, 2026, this pact allows 99% of Indian goods to enter the 27-nation EU market without any tax, a huge win for Indian textiles and jewelry. In return, India will gradually lower its massive 110% duty on European cars to just 10% for a limited number of vehicles, making luxury brands like Mercedes and BMW significantly more affordable.

2. The India-US Tariff Deal
Signed on February 2, 2026, this deal ends a year of trade friction by dropping the total US tax on Indian products from 50% to a flat 18%. This move specifically benefits Indian textile, leather, and jewelry exporters, who now face lower duties than their regional competitors. To secure this, India agreed to stop purchasing Russian crude oil and will instead significantly increase imports of American energy and agricultural goods.

3. The India-New Zealand Deal
Concluded in December 2025, this agreement is designed to double bilateral trade by 2030. It is a "people-centric" pact that removes numerical caps on Indian students and creates a new 5,000-visa quota for skilled Indian professionals (IT, healthcare, and AYUSH). While New Zealand gets better access for its premium horticulture and timber, India gains a high-tech partner to boost its own agricultural productivity and a gateway to the wider Pacific market

4. The India-Oman CEPA
Signed on December 18, 2025, this agreement makes Indian products significantly cheaper and more competitive in the Gulf. It is particularly beneficial for Indian MSMEs in the hardware and machinery sectors. For the first time, Oman has also eased visa rules for skilled Indian professionals, allowing them to stay for up to two years and increasing the quota for Indian managers in Omani companies to 50%.

5. The India-UK Trade Deal
Signed on July 24, 2025, this "Services-First" pact is designed to integrate the world's 5th and 6th largest economies. It eliminates UK duties on 99% of Indian goods, specifically giving Indian textile and jewelry exporters an edge over competitors like Bangladesh. In exchange, India has opened a "quota-based" window for British luxury cars at a 10% duty, down from 110%, ensuring that premium brands like Land Rover and Bentley become more accessible in the Indian market.

Modern Comprehensive Deals (Post-2021)

Some high-standard, 'new-age' agreements that go beyond simple buying and selling to create a deep, rules-based ecosystem for goods, services, and strategic investments have been listed below-

1. EFTA (Switzerland, Norway, Iceland, Liechtenstein): Signed in 2024, it includes a historic $100 billion investment commitment into India over 15 years.

2. Australia (ECTA): Operational since Dec 2022, it provides duty-free access for over 96% of Indian exports (textiles, leather, gems).

3. UAE (CEPA): Signed in early 2022 in just 88 days, it aims to increase bilateral trade to $100 billion.

4. Mauritius (CECPA): India’s first trade agreement with an African nation (2021).

What’s Next on the Horizon?

Having just locked in "The Big Four" (US, EU, UK, and UAE), India is now moving into Phase 2 of its trade expansion. The goal is no longer just "market access," but securing critical minerals and deepening service-sector ties.

Commerce Minister Piyush Goyal recently confirmed that India is no longer "defensive" in its trade posture. The government is currently in the final stages of talks with:

• Canada: Negotiations for an Early Progress Trade Agreement (EPTA) have resumed.
• GCC (Gulf Cooperation Council): Terms of reference are finalized for a bloc-wide deal. 
• Israel & Peru: Active negotiations for full-scale FTAs are underway. 
• Economic Impact: As of 2026, India’s total trade with FTA partners has grown by 92% since 2021, significantly outperforming its trade growth with non-FTA nations.

159 days after Washington imposed a 50% tariff 

It must be noted that the 159-day trade standoff finally came to an end last night, concluding a period of intense economic friction that began on August 27, 2025, when Washington slapped a staggering 50% tariff on New Delhi. 

This punitive rate was composed of a 25% "reciprocal" duty and an additional 25% penalty specifically targeting India's continued imports of Russian oil. 

For nearly five months, these "Liberation Day" penalties left Indian exporters at their most disadvantaged in decades, until the newly brokered deal successfully collapsed those duties down to a competitive 18%.

India gains edge over regional export competitors

Following the announcement of the India-US trade deal on Monday, in which Washington reduced tariffs on India to 18 per cent, New Delhi now faces lower tariffs than its regional export competitors in South and Southeast Asia. 

With the new tariff structure, India now has a clear advantage over competing export economies in the region, with lower tariff rates compared to Indonesia at 19 per cent and Bangladesh and Vietnam with 20 per cent each. 

Compared to China, India now enjoys significantly lower tariffs, with tariffs levied on Beijing at 34 per cent. 

India also enjoys a slight edge over Pakistan, with tariffs on Islamabad currently levied at 19 per cent.

Also Read: Trump Announces Reduced 18% Tariffs On India After Telephonic Conversation With PM Modi