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India’s growing role in the global economy has been significantly influenced by its proactive stance in signing Free Trade Agreements (FTAs) and Comprehensive Economic Partnership/Cooperation Agreements (CEPA/CECA). These agreements serve as crucial tools in expanding market access, attracting investment, and enhancing India’s competitiveness in both regional and global trade landscapes. Among the dozen-plus agreements India has signed, a few stand out for their tangible benefits to key sectors of the economy, offering strategic gains in exports, services, and investment.

One of the most impactful recent trade agreements is the India–UAE Comprehensive Economic Partnership Agreement (CEPA), signed in 2022. This deal eliminated duties on nearly 97% of Indian goods exported to the UAE, immediately giving Indian products such as gems and jewellery, textiles, leather, and processed foods a competitive edge in the Gulf region. With an ambitious bilateral trade target of $100 billion by 2027, this agreement also opened up UAE-based infrastructure and fintech investments for Indian businesses, positioning the UAE as both a gateway and a partner in India’s West Asia trade corridor.

Another landmark agreement is the India–UK Free Trade Agreement (FTA), signed in 2025. It promises transformative outcomes by making 99% of Indian exports tariff-free in the UK market. Simultaneously, about 90% of UK exports will benefit from tariff reductions, with 85% of them becoming tariff-free over a decade. The expected doubling of bilateral trade to $120 billion by 2030 reveals the deal’s scale, with major benefits expected for Indian sectors such as textiles, auto parts, IT services, and labour-intensive industries. The agreement also holds strategic importance in a post-Brexit global order where both nations are exploring newer bilateral synergies.

Earlier agreements also continue to deliver substantial value. The India–ASEAN FTA, effective in goods since 2009 and in services since 2014, is vital in promoting India’s Look East policy. It has notably boosted Indian exports of engineering goods, chemicals, and agricultural products to Southeast Asia, and it continues to serve as a foundation for deeper regional integration. Given ASEAN’s economic size and proximity, this FTA provides India with a strong platform for both goods and services trade in one of the most dynamic regions globally.

The India–Australia Economic Cooperation and Trade Agreement (ECTA), signed in 2022, is another example of strategic alignment. It reduced tariffs on critical Indian exports such as pharmaceuticals, textiles, and leather goods while facilitating easier movement for Indian professionals into Australian markets. In a similar vein, the India–Japan CEPA (2011) and India–South Korea CEPA (2009) have created avenues for expanded trade in automobiles, electronics, and services, complemented by investment inflows into Indian manufacturing and infrastructure. These East Asian partnerships are especially significant as India seeks to strengthen ties within the Indo-Pacific and diversify its trade beyond traditional partners.

A newer and increasingly important agreement is the India–EFTA Trade and Economic Partnership Agreement (TEPA) signed in 2024. Though smaller in geographic and economic scale compared to other blocs, the EFTA countries (Switzerland, Norway, Iceland, and Liechtenstein) are high-value markets. The agreement offers India niche opportunities in pharmaceuticals, machinery, and high-end services, and opens the door for investment and technology transfers, particularly from Switzerland—a global leader in innovation and finance.

Among these, the India–UAE CEPA, India–UK FTA, and India–ASEAN FTA emerge as the most beneficial agreements. The UAE CEPA offers immediate and broad-based trade advantages with a clearly defined investment framework. The UK FTA provides a substantial competitive advantage in a major Western market and strengthens India’s global services footprint. Meanwhile, the ASEAN FTA remains central to India’s regional connectivity and export diversification strategy.

As India continues to recalibrate its global trade strategy—focusing on both economic resilience and strategic depth—its FTAs play a pivotal role in shaping outcomes. With upcoming negotiations likely with the EU, GCC, and Canada, India’s trade landscape is expected to be further transformed. What remains critical is ensuring that these FTAs are complemented by strong domestic reforms, improved logistics, and export-readiness among small and medium enterprises so that the benefits of global integration are widely distributed.

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