What's Happening?
India has strategically expanded its Free Trade Agreement (FTA) network in 2025, signing new agreements with countries including Oman, the UK, New Zealand, EFTA nations, and Australia. These agreements are
designed to enhance trade by reducing tariffs and increasing market access for various sectors. For instance, the India-Oman CEPA aims to strengthen trade in textiles, gems, and pharmaceuticals, while the India-UK FTA focuses on textiles, leather, and pharmaceuticals. The agreements are expected to significantly boost India's export capabilities, with sectors like textiles, engineering goods, and processed foods poised to benefit the most.
Why It's Important?
These FTAs are crucial for India's economic strategy, as they aim to diversify and strengthen its export markets amid global trade tensions and economic shifts. By securing favorable terms with key trading partners, India can enhance its competitive edge in sectors like textiles and pharmaceuticals, which are vital for its economic growth. The agreements also reflect India's efforts to align with global trade norms and leverage its manufacturing capabilities. This could lead to increased foreign investment, job creation, and a more robust economic position on the global stage.
