India is party to free trade agreements (FTAs) and other trade agreements with many countries and trade blocs, and is negotiating with many others.[1]
The negotiations for the Comprehensive Economic Partnership Agreement between India and the United Arab Emirates were completed in 88 days, which was the shortest time span for any free trade agreement signed by India.[2]
Overview
There are different types of trade agreements that enable preferential market access between India and signatory countries or trade blocs - preferential trade agreements (PTA), free trade agreements (FTA), and Comprehensive Economic Cooperation Agreements (CECA) and Comprehensive Economic Partnership Agreements (CEPA).[3]
A preferential trade agreement (PTA) involves two or more partners agreeing to reduce tariffs on an agreed number of tariff lines (products). The list of products on which the partners agree to reduce duty is called the positive list. In general, PTAs do not cover substantially all trade. The India Mercosur Preferential Trade Agreement is an example of a PTA.[3]
A free trade agreement (FTA) also involves reducing or eliminating tariffs on items traded between the partner countries; however each maintains individual tariff structure for non-members. The key difference between an FTA and a PTA is that PTAs have a positive list of products on which duty is to be reduced, while an FTA uses a negative list on which duty is not reduced or eliminated. Thus, compared to a PTA, FTAs are generally more ambitious in coverage of tariff lines on which duty is to be reduced. The India Sri Lanka Free Trade Agreement is an example of an FTA.[3]
Comprehensive Economic Cooperation Agreement (CECA) and Comprehensive Economic Partnership Agreement (CEPA) are agreements which consist of an integrated package on goods, services and investment, as well as trade facilitation and rule-making in areas such as intellectual property, government procurement, technical standards and sanitary and phytosanitary issues. The India Korea CEPA is one such example and it covers a broad range of other areas such trade facilitation, customs cooperation, investment, competition, intellectual property rights etc. CECA/CEPAs are more comprehensive and ambitious than FTAs in terms of coverage of areas and the type of commitments. While a traditional FTA focuses mainly on goods, a CECA/CEPA provides holistic coverage of many areas like services, investment, competition, government procurement, disputes etc. Further, a CECA/CEPA looks deeper into the regulatory aspects of trade than an FTA. Due to this, it encompasses mutual recognition agreements (MRAs) that cover the regulatory regimes of the partners. An MRA recognises different regulatory regimes of partners on the presumption that they achieve the same end objectives.[3]
Bilateral agreements
| Country | Agreement name | Type | Signed | Effective | Ref. |
|---|---|---|---|---|---|
| Afghanistan | Afghanistan–India Preferential Trade Agreement | PTA | 6 March 2003 | 13 May 2003 | [4][5] |
| Australia | Australia–India Comprehensive Economic Cooperation Agreement | CECA | 2 April 2022 | 29 December 2022 | [6][7] |
| Chile | Chile–India Preferential Trade Agreement | PTA | 8 March 2006 | 11 September 2007 | [8][9] |
| Japan | India–Japan Comprehensive Economic Partnership Agreement | CEPA | 16 February 2011 | 1 August 2011 | [8] |
| Malaysia | India–Malaysia Comprehensive Economic Cooperation Agreement | CECA | 8 February 2011 | 1 July 2011 | [8] |
| Mauritius | India–Mauritius Comprehensive Economic Cooperation and Partnership Agreement | CECPA | 22 February 2021 | 1 April 2021 | [8] |
| New Zealand | India–New Zealand Free Trade Agreement | FTA | 27 April 2026 | [10][11][12] | |
| Oman | India–Oman Comprehensive Economic Partnership Agreement | CEPA | 18 December 2025 | 1 June 2026 | [13] |
| Singapore | India–Singapore Comprehensive Economic Cooperation Agreement | CECA | 29 June 2005 | 1 August 2005 | [8] |
| South Korea | India–South Korea Comprehensive Economic Partnership Agreement | CEPA | 7 August 2009 | 1 January 2010 | [8] |
| Sri Lanka | India–Sri Lanka Free Trade Agreement | FTA | 28 December 1998 | 1 March 2000 | [14] |
| Thailand | India–Thailand Free Trade Agreement | FTA | 9 October 2003 | 1 September 2006 | [8] |
| United Arab Emirates | India–United Arab Emirates Comprehensive Economic Partnership Agreement | CEPA | 18 February 2022 | 1 May 2022 | [15][16] |
| United Kingdom | India–United Kingdom Comprehensive Economic and Trade Agreement | CETA | 24 July 2025 | [17][18] | |
| United States | India–United States Bilateral Trade Agreement | BTA | TBA | [19] |
Under negotiation
- Bangladesh (CEPA)[8]
- Canada (CEPA)[20]
- Chile (CEPA)[21]
- Israel (FTA)[8]
- Peru (FTA)[8]
- South Africa (CEPA)[22]
Multilateral agreements
| Countries/Trading Bloc | Agreement name | Type | Signed | Effective | Ref. |
|---|---|---|---|---|---|
| Asia-Pacific Trade Agreement | PTA | 1975 (revised November 2005) | 17 July 1976 (revised 1 September 2006) | ||
| ASEAN | ASEAN-India Trade in Goods Agreement | CECA | 13 August 2009 | 1 January 2010 | [8] |
| ASEAN-India Trade in Services Agreement | November 2014 | 1 July 2015 | [8][23] | ||
| ASEAN-India Investment Agreement | November 2014 | 1 July 2015 | [8][23] | ||
| 41 countries | Global System of Trade Preferences | PTA | 13 April 1988 | 19 April 1989 | |
| Mercosur | India–Mercosur Preferential Trade Agreement | PTA | 25 January 2004 | 1 June 2009 | [8] |
| SAARC | South Asia Free Trade Agreement | FTA | 6 January 2004 | 1 January 2006 | |
| European Free Trade Association | India–EFTA Trade and Economic Partnership Agreement | TEPA | 10 March 2024 | 1 October 2025 | [24] |
| European Union | India–European Union Free Trade Agreement | FTA | 27 January 2026 | [25] | |
| GCC | India–Gulf Cooperation Council Free Trade Agreement | FTA | 2026 (Tentative) | [26] |
Under negotiation
- BIMSTEC (FTA)[27]
- Eurasian Economic Union (FTA)[28]
- IBSA (FTA)[27]
- Southern African Customs Union (PTA)[8]
Abandoned proposals
See also
References
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- ^ "India UAE Trade: India-UAE trade deal to be operationalised from May 1: Piyush Goyal". The Times of India. ANI. 29 March 2022. Retrieved 2022-04-05.
- ^ "FAQ on FTA". Department of Commerce. 9 April 2014. Retrieved 5 April 2022.
- ^ "India-Afghanistan PTA". Department of Commerce. Retrieved 2022-04-05.
- ^ "India-Afghanistan Preferential Trading Agreement Free Trade Agreement". aric.adb.org. Retrieved 2022-04-05.
- ^ "India, Australia sign FTA, trade likely to 'double in 5 yrs, generate 1 mn jobs'". The Indian Express. 2022-04-03. Retrieved 2022-04-05.
- ^ "India-Australia FTA kicks off, nearly 96% exports get free access". Moneycontrol. 29 December 2022. Retrieved 30 December 2022.
- ^ "Annual Report 2021-2022". Department of Commerce. pp. 80–109. Retrieved 5 April 2022.
- ^ "India-Chile Preferential Trading Agreement Free Trade Agreement". aric.adb.org. Retrieved 2022-04-05.
- ^ "Zero Duties, Big Gains: India-New Zealand FTA Opens New Doors". India Briefing News. 2026-04-27. Retrieved 2026-04-28.
- ^ "India and New Zealand conclude Free Trade Agreement Negotiations on Financial Services, a part of Annex to the Trade in Services Chapter". Press Information Bureau. Retrieved 7 January 2026.
- ^ "PIB Headquarters". www.pib.gov.in. Archived 2 January 2026 at the Wayback Machine. Retrieved 2026-01-24.
- ^ "India and Oman sign Comprehensive Economic Partnership Agreement (CEPA)". Press Information Bureau. Retrieved 22 December 2025.
- ^ "Free Trade Agreement". Noida Special Economic Zone. Archived from the original on 30 June 2022. Retrieved 19 June 2022.
- ^ "What is India – UAE CEPA, how it will benefit both economies?". gulfnews.com. 19 February 2022. Retrieved 2022-04-05.
- ^ Suneja, Kirtika. "India-UAE free trade pact comes into force". The Economic Times. Retrieved 2022-05-10.
- ^ Prime Minister's Office, 10 Downing Street; HM Treasury; Cabinet Office; Starmer, Keir (23 July 2025). "Prime Minister secures thousands of British jobs and £6 billion in investment and export wins as historic trade deal with India signed". GOV.UK. Archived 23 July 2025 at the Wayback Machine. Retrieved 24 May 2025.
- ^ Pickard, Jim & Reed, John (24 July 2025). "Keir Starmer and Narendra Modi to sign UK-India trade deal". Financial Times. Archived 23 July 2025 at the Wayback Machine. Retrieved 24 July 2025.
- ^ "India-US trade deal: Hope and uncertainty as Trump cuts tariffs". www.bbc.com. 2026-02-03. Retrieved 2026-02-07.
- ^ "India, Canada formally agree to step up talks over FTA". Hindustan Times. 2022-03-12. Retrieved 2022-04-05.
- ^ "India, Chile Sign Terms For Comprehensive Economic Partnership Agreement". BW Businessworld. Retrieved 2026-02-13.
- ^ "Trade deals: India exploring renewed negotiations with New Zealand, South Africa for new FTA deals | Mint". Archived from the original on 2024-06-28. Retrieved 2024-06-30.
- ^ "ASEAN-India Free Trade Area (AIFTA)". ASEAN. Retrieved 5 April 2022.
- ^ Welcome to department of commerce, Government of India. "Trade and Economic Partnership Agreement between the Government of the Republic of India and the Governments of EFTA States - Mcommerce". Mcommerce. Archived 14 November 2025 at the Wayback Machine. Retrieved 2026-01-23.
- ^ "EU-India". policy.trade.ec.europa.eu. 2025-06-11. Retrieved 2026-01-27.
- ^ "India, GCC Agree To Pursue Free Trade Agreement; Resume Talks: Piyush Goyal". Outlook. Retrieved 30 December 2022.
- ^ "India's Trade Agreements - At a Glance". www.dezshira.com. 11 January 2018. Retrieved 2022-04-05.
- ^ "India, Russia-led Eurasian bloc to begin negotiations on FTA soon". 27 December 2023.
- ^ "Rcep Trade Agreement: India decides to opt out of RCEP, says key concerns not addressed". The Economic Times. 5 November 2019. Retrieved 5 April 2022.