Overview
The Ministry of Commerce & Industry reported that India signed or announced nine FTAs covering 38 nations during 2025‑26. This rapid expansion reflects a shift from a cautious trade stance to a proactive, future‑ready approach, aiming to leverage the country’s market size and the vision of Atmanirbhar Bharat while targeting a Viksit Bharat @2047.
Key Developments (2025‑26)
- India–Mauritius (2021) – First FTA in the decade, setting the template for subsequent deals.
- India–UAE Comprehensive Economic Partnership Agreement (CEPA) – Signed May 2022, enhancing services and investment flows.
- India–Australia Economic and Trade Agreement – Implemented Dec 2022, opening markets for agriculture and services.
- India–EFTA Trade and Economic Partnership Agreement (TEPA) – Signed 10 Mar 2024, entered force 1 Oct 2025. EFTA partner.
- India–UK Comprehensive Economic Partnership (CETA) – Signed July 2025.
- India–Oman CEPA – Signed Dec 2025.
- India–New Zealand FTA – Announced 22 Dec 2025.
- India–EU FTA – Announced 27 Jan 2026, covering the 27‑member European Union.
- Interim framework with United States – Delivered 7 Feb 2026, signalling a potential US‑India FTA.
Important Facts
The nine agreements collectively cover 38 countries, spanning major economies in Europe, the Middle East, Oceania and North America. They target diverse sectors: agriculture, textiles, leather, handicrafts, digital services, AI, AYUSH (traditional wellness), and skilled‑personnel mobility. Provisions such as post‑study work visas, social‑security reciprocity and preferential market access aim to boost exports of farmers, women‑led MSMEs, and young professionals. Sensitive sectors like dairy and core agriculture have been shielded through safeguard clauses, ensuring domestic producers are not exposed to sudden competition.
UPSC Relevance
Understanding these FTAs is crucial for GS‑III (Economy) and GS‑II (Polity) questions on trade policy, diplomatic negotiations, and India’s global economic strategy. The emphasis on Atmanirbhar Bharat reflects the government’s balancing act between liberalisation and protecting strategic industries. The inclusion of service‑sector mobility aligns with the services‑led growth model discussed in the Economic Survey. Moreover, the strategic outreach to the US and EU ties into India’s foreign‑policy objectives under the ‘Act East’ and ‘Neighbourhood First’ doctrines.
Way Forward
To capitalise on the expanded trade network, the government must:
- Strengthen domestic capacity in agriculture and MSMEs to meet higher export standards.
- Implement robust monitoring mechanisms for safeguard clauses to protect sensitive sectors.
- Facilitate skill‑development programmes that align Indian talent with the demand created by new market access.
- Leverage digital infrastructure to promote e‑commerce and AI‑driven services under the FTAs.
- Continue diplomatic engagement to convert the US interim framework into a full‑scale FTA.
Successful execution will not only enhance India’s trade surplus but also contribute to the broader goal of a Viksit Bharat @2047 by creating jobs, attracting investment, and integrating Indian products and services into global value chains.