India has signed multiple Free Trade Agreements in the last five years with countries like Mauritius, UAE, Australia, EFTA members, and the UK to boost trade, investment, and market access.
A Free Trade Agreement (FTA) is a pact between two or more countries designed to promote trade and investment by reducing or eliminating tariffs, import duties, and non-tariff barriers on goods and services. These agreements aim to create a level playing field for businesses, foster economic cooperation, and boost exports by improving market access.
In addition to lowering tariffs, FTAs often address areas like intellectual property rights, investment protection, e-commerce, labor standards, and sustainable development. Depending on their scope, they can cover anywhere between 10 to 30 policy areas, making them comprehensive tools for strengthening bilateral and regional economic ties.
Why FTAs matter
FTAs are crucial for countries like India that seek to integrate more deeply with global value chains. By removing trade barriers, they help exporters gain preferential access to key markets, attract foreign investment, and make Indian products more competitive. FTAs also encourage diversification of trade beyond traditional partners, helping India expand its presence in emerging markets.
For India, FTAs play a strategic role in countering trade dependencies, enhancing supply chain resilience, and positioning the country as a reliable global manufacturing hub. However, policymakers also balance these benefits against concerns over potential surges in imports that may affect domestic industries.
India’s major FTAs signed in the last five years
Mauritius โ Comprehensive Economic Cooperation and Partnership Agreement (CECPA) (2021):
Indiaโs first FTA with an African nation, this deal covers trade in goods, services, investment, and intellectual property. It provides greater market access for Indian textiles, pharmaceuticals, and engineering goods.
United Arab Emirates โ Comprehensive Economic Partnership Agreement (CEPA) (2022):
This agreement aims to boost annual bilateral trade to $100 billion within five years. It provides duty-free access for over 90% of Indian exports, including gems, jewelry, and textiles.
Australia โ Economic Cooperation and Trade Agreement (ECTA) (2022):
Indiaโs first trade pact with a developed country in over a decade, the ECTA grants preferential market access to Indian exporters and aims to double bilateral trade to $50 billion in five years.
EFTA (European Free Trade Association โ Iceland, Liechtenstein, Norway, Switzerland) โ Trade and Economic Partnership Agreement (TEPA) (2024):
This pact focuses on technology collaboration, investment in manufacturing, and access to high-value European markets for Indian goods and services.
United Kingdom โ Comprehensive Economic and Trade Agreement (CETA) (2025):
Finalised in 2025 and awaiting implementation, this agreement is expected to deepen trade and investment ties between India and the UK, with a focus on services, digital trade, and manufacturing.
The road ahead
With these FTAs, India is positioning itself as a proactive global trading partner. As negotiations continue with the EU, Canada, and the Gulf Cooperation Council (GCC), the country aims to strengthen its role in global trade networks while ensuring that such deals align with domestic growth and employment priorities.