Since the end of 2025, India’s trade topography has undergone a seismic shift, moving from a period of cautious negotiation to one of historic implementation.
The Foreign Trade Policy 2025-2030 framework
has now been fully activated aiming to propel India toward a $2 trillion export target by 2030. This strategy focusses on diversifying trade partners across the West, Middle East and Indo-Pacific to reduce dependency on any single market and better integrate Indian MSMEs into global value chains.
The first few weeks of 2026 have already seen the conclusion of the "Mother of All Deals" with the European Union and a significant re-calibration of trade terms with the United States. These milestones, combined with the operationalisation of the $100 billion EFTA pact and the landmark India-UK agreement, signal India’s emergence as a primary global manufacturing alternative.
Here is how India's trade pacts with various nations have enabled the country to recast the trade scenario in its favour.
India-US trade breakthrough
On February 2, 2026, India and the United States finalised a high-stakes trade agreement that effectively de-escalated a year of mounting tariff tensions.
Under the new terms, the US reduced its reciprocal tariffs on Indian goods from 50% down to 18%.
In a strategic exchange, India agreed to provide zero-duty access for American technology and energy products while committing to a significant reduction in Russian oil imports.
This deal is viewed as a vital step in securing a resilient "China+1" supply chain between the two largest democratic economies.
India-EU Comprehensive FTA
Formally concluded on January 27, 2026, the India-EU Free Trade Agreement is the largest and most ambitious trade pact in India's history.
This landmark deal provides duty-free access for over 99% of Indian exports, offering an immediate competitive edge to labour-intensive sectors such as textiles, leather and jewellery.
For the EU, India has granted unprecedented concessions, including slashing car tariffs from 110% to 10% and significantly reducing duties on machinery and wines.
This agreement covers a market of nearly 2 billion people and is expected to double bilateral trade by 2032.
India-New Zealand trade conclusion
By December 22, 2025, India and New Zealand successfully concluded negotiations for a full-scale Free Trade Agreement following high-level talks in New Delhi.
The agreement includes a commitment from New Zealand to invest $20 billion into the Indian economy over the next 15 years.
While the focus remains on agricultural technology and services, the deal also simplifies entry for Indian professionals into the Kiwi market.
The formal signing ceremony is expected to take place in the first half of 2026.
India-Oman CEPA
The Comprehensive Economic Partnership Agreement (CEPA) with Oman was officially signed on December 18, 2025. This strategic pact grants 98% of Indian goods duty-free entry into Oman, specifically benefiting Indian exporters of gems, electronics and food products.
As India’s gateway to the Gulf, this agreement strengthens maritime trade corridors and secures long-term energy cooperation between the two nations.
India-EFTA TEPA implementation
The Trade and Economic Partnership Agreement (TEPA) with the European Free Trade Association (Switzerland, Norway, Iceland and Liechtenstein) officially entered into force on October 1, 2025.
This historic treaty is unique for its legally binding investment commitment, where EFTA nations pledged to direct $100 billion of foreign direct investment into India over 15 years.
The pact focusses on high-tech manufacturing, pharmaceuticals and renewable energy, marking a major win for India’s "Make in India" initiative.
India-United Kingdom CETA
Signed in July 2025, the Comprehensive Economic and Trade Agreement (CETA) with the UK has already begun to transform bilateral commerce.
It provides immediate duty-free access for Indian textiles and footwear while the UK benefits from phased tariff reductions on Scotch whisky and premium automobiles.
This deal serves as a cornerstone of India’s "Vision 2035" strategic partnership focussing on professional mobility and digital trade.
