India Signs Seven FTAs Since 2021, Unlocks $100 Billion Investment Commitment

India has concluded seven Free Trade Agreements (FTAs) and Comprehensive Economic Partnership Agreements (CEPAs) over the past five years, significantly expanding its preferential trade network, according to data from the Department of Commerce.

The agreements cover economies with a combined GDP exceeding $20 trillion and include partners in Africa, the Gulf, Europe and the Indo-Pacific, reflecting a diversification of India’s trade engagement beyond traditional markets.

Mauritius Pact Marks India’s First African Trade Agreement 

India signed the Comprehensive Economic Cooperation and Partnership Agreement (CECPA) with Mauritius in 2021, marking its first trade agreement with an African country.

India–Mauritius bilateral trade stood at around $690 million in FY21 and has since recorded steady growth, supported by tariff concessions and expanded services access under the agreement. Mauritius also serves as a key conduit for Indian investment into Africa, with cumulative Indian FDI routed through Mauritius exceeding $160 billion over the past two decades.

UAE CEPA Lifts Bilateral Trade Past $100 Billion

The India–UAE Comprehensive Economic Partnership Agreement, implemented in May 2022, has delivered one of the fastest trade expansions among India’s recent FTAs.

Bilateral trade crossed $100 billion in FY25, up from about $72 billion in FY22, translating into a compound annual growth rate of over 11%. Indian exports to the UAE have been led by gems and jewellery, petroleum products, engineering goods, electronics and pharmaceuticals.

Under the CEPA, over 90% of Indian tariff lines received preferential access, with phased elimination on most remaining products.

Also read: OpenAI to Test Ads in ChatGPT as It Seeks New Revenue Streams

Australia ECTA Introduces Near 100% Tariff Elimination

India’s Economic Cooperation and Trade Agreement (ECTA) with Australia, signed in 2022, covers bilateral trade of approximately $31 billion.

The agreement eliminated tariffs on more than 85% of Indian exports by value, with a roadmap to near-100% tariff elimination over time. Indian exports benefiting from immediate duty-free access include textiles, apparel, leather goods, pharmaceuticals and jewellery, while services trade has expanded across education, IT, and professional services.

EFTA Agreement Backed By $100 Billion Investment Pledge

India concluded the Trade and Economic Partnership Agreement (TEPA) with the European Free Trade Association (EFTA), Switzerland, Norway, Iceland, and Liechtenstein in 2024/25.

The agreement is supported by a $100 billion investment commitment over 15 years, the largest investment pledge associated with any Indian trade agreement. The EFTA bloc currently accounts for over $18 billion in annual trade with India, with Switzerland alone contributing a major share.

The agreement provides tariff concessions on over 90% of Indian exports, covering pharmaceuticals, engineering goods, chemicals, and machinery.

UK Trade Agreement Grants 99% Tariff Free Access 

The India–UK Comprehensive Economic and Trade Agreement, concluded in 2025, provides tariff-free access for approximately 99% of Indian exports to the UK.

India–UK bilateral trade currently stands at about $36 billion, with Indian exports spanning textiles, apparel, leather goods, engineering products, automotive components, and food items. The agreement also includes commitments on services and professional mobility.

Oman CEPA Offers Highest Tariff Coverage In The GCC

India’s CEPA with Oman, signed in 2025, grants zero-duty access on 98.08% of Omani tariff lines, covering about 99% of India’s exports by value.

India–Oman trade stands at approximately $12.4 billion, with Indian exports dominated by petroleum products, iron and steel, textiles, and machinery.

New Zealand FTA Negotiated In Nine Months

India concluded a Free Trade Agreement with New Zealand in 2025 after negotiations lasting nine months.

The agreement provides tariff reductions on around 95% of traded goods and covers bilateral trade of roughly $2.8 billion. Provisions aim to double trade volumes over the medium term while protecting sensitive sectors.

Aggregate Impact Of Recent FTAs

Taken together, India’s seven trade agreements:

• Cover markets accounting for over one-third of global GDP
• Provide preferential access to over 90% of tariff lines in multiple partner economies
• Include cumulative investment commitments exceeding $100 billion
• Span bilateral trade relationships totalling over $200 billion annually

Also read: Budget 2026: A Working Sunday For Markets, NSE To Remain Open On Feb 1