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Nov 25, 2025 .

India’s Ambitious Free Trade Agenda: Catalyzing Economic Growth

India has embarked on an aggressive and strategically important campaign of Free Trade Agreement (FTA) negotiations with key global economies, a move designed to significantly enhance its trade, attract foreign investment, and boost its overall economic growth prospects. These modern, comprehensive agreements move beyond traditional goods trade, encompassing services, investment, intellectual property, and digital trade, aligning India’s economy with global best practices and positioning it to become the world’s third-largest economy in the next two to two-and-a-half years. The momentum reflects India’s shift from being one of the “Fragile Five” to a major economic powerhouse, driven by strong fundamentals, macroeconomic stability, and an aspiration to diversify its global supply chains.

Specific Details on Ongoing FTA Discussions and Timelines

India-United Kingdom Comprehensive Economic and Trade Agreement (CETA): The negotiations for the India-UK FTA have been a flagship of this new trade push, and a significant milestone was reached with the conclusion of talks and agreement reached on the terms in July 2025. The text of the agreement, covering 30 chapters, has been published, and it is expected to be presented to the UK Parliament for scrutiny under the Constitutional Reform and Governance (CRAG) Act 2010 in early 2026, with entry into force anticipated soon after governmental requirements are fulfilled. Key benefits include the UK’s long-term GDP increase of 0.13%, a significant reduction in India’s average tariff on UK products from 15% to 3%, and specific tariff cuts on items like whisky and cars. The agreement also includes a commitment to negotiate a separate Double Contributions Convention (DCC) to simplify social security payments for employees moving between the two countries.

India-European Union (EU) FTA and Associated Pacts: India and the 27-nation European Union are engaged in negotiations for a comprehensive FTA, alongside separate agreements on Investment Protection and Geographical Indications. Both sides have recently reaffirmed their shared ambition to conclude the FTA negotiations by the end of this year (2025), with a view to firming up the pact at the India-EU Summit scheduled for January 27, 2026, in New Delhi. The pact aims to significantly boost the bilateral trade, which was valued at $135 billion in FY 2023-24. While issues related to agricultural market access and alcoholic beverages are largely resolved, both parties are working to find “landing zones” on areas like steel, automobiles, the EU’s Carbon Border Adjustment Mechanism (CBAM), and certain regulatory issues.

India-Canada Comprehensive Economic Partnership Agreement (CEPA): After being paused in 2023 due to diplomatic tensions, India and Canada have agreed to resume negotiations for a “high-ambition” CEPA. The restart of talks was affirmed following high-level meetings between the two nations’ leadership. The primary objective of this CEPA is to double the bilateral trade to USD 50 billion by 2030. The renewed focus areas include critical minerals, clean energy, nuclear energy cooperation (specifically uranium supplies), supply chain diversification, and emerging technologies such as Artificial Intelligence and Quantum Computing. The new push for the trade deal, which was first launched in 2010, is now underpinned by a renewed sense of mutual trust, though a specific finalization timeline beyond the 2030 trade target is not yet publicly defined.

India-Eurasian Economic Union (EAEU) FTA: A new and crucial set of negotiations is set to begin with the Russia-led Eurasian Economic Union (EAEU), which comprises Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan. Formal negotiations for the FTA are scheduled to commence in New Delhi shortly, following the signing of the Terms of Reference on August 20, 2025. This move gains significance as India seeks to diversify its export markets. The Terms of Reference lay out an 18-month roadmap for the discussions, focusing on opening new markets for Indian businesses, particularly MSMEs, farmers, and the fishing community.

India-Israel FTA: India and Israel have recently revived negotiations for a Free Trade Agreement, with the Terms of Reference signed in November 2025. The renewed push, after talks stalled around 2014, emphasizes strategic collaboration over purely merchandise trade, focusing on high-value sectors such as defence manufacturing, electronics, semiconductors, water and irrigation technology, precision agriculture, cybersecurity, and frontier R&D, where the countries have complementary strengths. Discussions may follow a two-phase approach: an initial agreement on tariff reductions, followed by a broader deal covering investment and technology. A specific finalization date is pending the progress of virtual negotiations, which are set to begin soon.

Entellus International Private Limited: Navigating Global Trade for Sustainable Growth

Entellus International Private Limited recognizes the transformative impact of these Free Trade Agreements and is strategically positioned to assist businesses in capitalizing on the emerging opportunities while mitigating regulatory risks. As India’s global trade architecture evolves, the difference between success and stagnation for businesses lies in effective trade compliance, optimal supply chain structuring, and proficient navigation of complex customs and origin rules.

Entellus International Private Limited offers bespoke solutions designed to maximize the benefits derived from India’s new trade agreements:

FTA/CEPA Utilization Advisory: We provide comprehensive analysis of the concluded and upcoming FTAs (e.g., India-UK, India-EU, India-Canada), helping clients assess preferential duty structures, Rules of Origin (RoO) requirements, and the true commercial viability of shifting supply chains or expanding market access. Our expertise ensures that businesses not only qualify for preferential tariffs but also establish robust documentation processes to withstand audits.

Customs and Trade Compliance Services: With the changing landscape of global trade, especially new regulatory mechanisms like the EU’s CBAM (which is a point of contention in the India-EU talks), we offer end-to-end compliance services. This includes tariff classification, valuation, and managing post-FTA disputes, ensuring seamless and compliant cross-border movement of goods and services.

Strategic Investment and Services Market Entry: Leveraging the services and investment chapters of the new agreements, Entellus advises clients on structuring Foreign Direct Investments (FDI) into India and facilitating the temporary movement of professionals (Mode 4 services) into partner countries like the UK and Canada, unlocking key opportunities in technology, finance, and professional services sectors.

Sector-Specific Policy Advocacy: Given the deep focus on critical sectors like critical minerals, clean energy, aerospace, and digital trade within the current negotiations, we provide targeted regulatory intelligence and policy advocacy support, helping clients anticipate and adapt to new standards, technical barriers to trade (TBT), and sanitary and phytosanitary (SPS) measures embedded in the agreements.

By integrating deep trade policy knowledge with practical, commercial application, Entellus International Private Limited empowers Indian and international enterprises to harness the full potential of these bilateral and multilateral agreements, transforming market access into sustainable, profitable growth.

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