India's Trade Diplomacy: Many Success Stories, UK FTA Latest Feather In Crown
India has active, duty‑concession FTAs or CEPAs with Sri Lanka, Nepal, Bhutan, Maldives, Australia, South Korea, UAE among other nations.
As India prepares to ink its much-anticipated Free Trade Agreement (FTA) with the United Kingdom, New Delhi's growing network of trade pacts across Asia, Africa, and beyond are worth noting. Over the years, India has steadily built a portfolio of strategic FTAs, Comprehensive Economic Partnership Agreements (CEPAs), and Preferential Trade Agreements (PTAs), aimed at expanding exports, attracting investment, and enhancing global competitiveness.
The FTA with the UK will be a landmark deal, but it is only the latest chapter in India's evolving trade diplomacy. India currently has several active FTAs or CEPAs, supported by a growing network of negotiations.
Active FTAs / CEPAs
India–Sri Lanka FTA (ISFTA): Operational since 2001, this FTA covers goods trade with tariff reductions ranging from zero up to ~25 per cent, although key sensitive categories like motor vehicles and ceramics are excluded. It substantially expanded bilateral trade, especially in pharmaceuticals, textiles, and petroleum products.
SAFTA (South Asian Free Trade Area): A regional pact among Afghanistan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan, Sri Lanka, and India, this FTA aimed to reduce intra-SAARC tariffs to zero by 2016.
India–Bhutan Trade, Commerce & Transit Agreement: This is a longstanding arrangement providing near-complete duty‑free trade and transit access between India and Bhutan.
India–Maldives Trade Agreement: This agreement offers selective duty-free import/export provisions, strengthening economic and strategic ties in the Indian Ocean region.
India–Thailand FTA (Early Harvest Scheme): Launched in 2004, this covers around 82 product lines (e.g., auto components, electronics) as a precursor for deeper future trade engagement.
India–Singapore CECA: Since 2005, this comprehensive pact covers goods, services, investment, and mutual cooperation, enhancing access to finance, telecom, and technology sectors.
India–Malaysia CECA (IMCECA): Effective since 2011, this deeper CECA improved access in machinery, chemicals, electronics, palm oil and services, aiming to rebalance trade flows.
India–Japan CEPA: Signed in 2011, it removes tariffs on over 90 per cent of traded goods including textiles, marine products, and gems, while liberalising services and IP regimes.
India–South Korea CEPA (IKCEPA): This came into effect in 2010, with phased tariff elimination for autos, electronics, machinery, alongside services liberalisation and eased foreign investment caps (up to 65 per cent)
India–Mauritius CECPA: India's first African CECPA, it has been effective since 2021, and offers preferential access on textiles, pharmaceuticals, agricultural products, and includes a services component.
India–UAE CEPA: Operational from 1 May 2022, this agreement eliminates duties on nearly 90 per cent of Indian exports (gems, textiles, pharma, agri), has driven bilateral trade above USD 100 billion and supports up to 1 million jobs in labour‑intensive sectors.
India–Australia ECTA: The Economic Cooperation and Trade Agreement signed in April 2022 offers zero-duty access for over 96 per cent of Indian goods (textiles, leather, gems, engineering), serving as an interim arrangement before a full CECA.
India–ASEAN FTA: The India‑ASEAN Trade in Goods Agreement came into effect in 2010 (expanded in 2014 to services/investment), eliminating tariffs on more than 4,000 product lines and linking India to a market of 1.8 billion people.
Countries India Has Signed FTAs With
India has active, duty‑concession FTAs or CEPAs with Sri Lanka, Nepal, Bhutan, Maldives, Thailand, Singapore, Malaysia, Japan, South Korea, Mauritius, United Arab Emirates (UAE), Australia, ASEAN bloc (10 nations under goods/services/investment FTA), SAFTA regional bloc
FTAs In The Works
India is currently negotiating or reviewing trade pacts with several strategic partners:
United Kingdom: The India-UK FTA has been finalised and is set to be signed today. It covers goods, services, mobility, procurement and aims to remove tariffs on 99 per cent of Indian exports and 90 per cent of UK goods over time.
European Union: The long-delayed BTIA (Broad-Based Trade & Investment Agreement) talks have restarted. This agreement is set to be key for high-value goods and services access.
United States: A mini-deal between India and US is under discussion, aimed at doubling trade by 2030, covering tariffs, digital trade, and professional mobility. It is said to be signed soon.
Canada: The CEPA negotiations relaunched in March 2022 were paused, but are expected to resume this year.
New Zealand, Oman, Peru, Israel, GCC states (including Oman, Qatar, Saudi Arabia, Kuwait, Bahrain, UAE): FTA or CEPA talks between India and these nations are underway or being considered.
EFTA (Iceland, Norway, Switzerland, Liechtenstein): A TEPA was in signed March 2024, and expected to enter into force by late 2025.
Sri Lanka CEPA, Thailand CECA upgrade, BIMSTEC CECA, India‑South African Customs Union PTA are the existing agreements under review or being upgraded.
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July 24, 2025, 10:15 IST
News business India's Trade Diplomacy: Many Success Stories, UK FTA Latest Feather In Crown
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