Introduction

India’s trade policy has undergone a significant transformation in recent years, shifting from a cautious approach to a proactive pursuit of global partnerships. As the world’s fifth-largest economy, India is leveraging Free Trade Agreements (FTAs) to boost exports, attract foreign investment, and integrate deeper into global value chains. As of September 15, 2025, India has 13 active FTAs in place, covering preferential access and economic cooperation with over 50 countries. These include agreements with ASEAN nations, Japan, South Korea, the United Arab Emirates (UAE), Australia, Mauritius, and the European Free Trade Association (EFTA) bloc (Iceland, Liechtenstein, Norway, and Switzerland).

However, the real momentum lies in ongoing negotiations, with India on the verge of signing several landmark deals. Driven by Prime Minister Narendra Modi’s vision of India as a “Vishwa Mitra” (global partner), these negotiations aim to address tariff reductions, non-tariff barriers, digital trade, and sustainable development. In fiscal year 2024-25, Indian authorities issued 720,996 certificates of origin under FTAs, a 5.3% increase from the previous year, signaling robust utilization by exporters. This article provides a comprehensive overview of the latest updates, focusing on countries and blocs where agreements are nearing completion, based on official statements, ministerial updates, and recent negotiation rounds.

Key Negotiations on the Horizon

India is actively engaged in bilateral and multilateral talks with nearly a dozen partners, prioritizing deals that could add trillions to its GDP by 2030. Commerce Minister Piyush Goyal has emphasized a “balance over speed” approach, ensuring equitable outcomes while protecting sensitive sectors like agriculture and dairy. Below is a detailed breakdown of the most advanced discussions, including country/bloc details and current status as of September 15, 2025.

1. United Kingdom (UK)

Country Details: The UK, a G7 economy with a GDP of approximately $3.5 trillion, is India’s 12th-largest trading partner, with bilateral trade reaching £42.6 billion in 2024. Key sectors include automobiles, pharmaceuticals, textiles, and services. The UK is a major source of foreign direct investment (FDI) in India, particularly in IT and manufacturing.

Current Status: After three years of negotiations relaunched in January 2025, India and the UK finalized and signed the Comprehensive Economic and Trade Agreement (CETA) on July 24, 2025. This landmark deal eliminates tariffs on 99% of Indian exports (e.g., gems, jewelry, and textiles) and 90% of UK exports (e.g., whisky and automobiles). It is expected to boost bilateral trade by £25.5 billion (about $33 billion) and create jobs in both nations. The agreement includes provisions for easier market access for Indian professionals and reduced duties on Scotch whisky (from 150% to 75%). Ratification is pending, with implementation anticipated by early 2026. This FTA marks a post-Brexit win for both sides, aligning with India’s goal of enhancing services trade.

2. European Union (EU)

Bloc Details: The EU, comprising 27 member states, represents a $18 trillion market and is India’s second-largest trading bloc after ASEAN. Bilateral trade stood at €120 billion in 2024, with focus areas including machinery, chemicals, automobiles, and digital services. The EU is India’s largest investor bloc, contributing over €100 billion in FDI since 2000.

Current Status: Negotiations for an ambitious FTA, Investment Protection Agreement, and Geographical Indications Agreement resumed in June 2022 after a nine-year hiatus. As of September 2025, over 60% of the 23 chapters have been finalized, including digital trade and anti-fraud clauses. The 13th round of talks (September 8-12, 2025) in New Delhi involved 75 technical sessions on agriculture, market access, intellectual property, and sustainable development. EU Trade Commissioner Maroš Šefčovič visited India on September 11-12, reaffirming commitment to conclude by year-end, as agreed by PM Modi and European Commission President Ursula von der Leyen in February 2025. Challenges include India’s red lines on dairy/agriculture and the EU’s Carbon Border Adjustment Mechanism (CBAM). The 14th round is scheduled for October 6-10 in Brussels. A deal could add €3-4.4 billion in real income for both sides annually, enhancing supply chain resilience amid geopolitical tensions.

3. United States (US)

Country Details: The US, with a $27 trillion GDP, is India’s largest trading partner ($191 billion in goods and services in 2024) and third-largest FDI source ($76.26 billion cumulative from 2000-2025). Key exports include IT services, pharmaceuticals, and textiles; imports focus on energy and machinery.

Current Status: Formal talks for a Bilateral Trade Agreement (BTA) began in March 2025 under the “Mission 500” initiative to double trade to $500 billion by 2030. Five rounds are complete, with the sixth deferred but “on track” for conclusion of the first phase by fall 2025 (October-November). Terms of Reference were established in April 2025, covering multi-sector issues like tariffs, technical barriers, and services. Tensions arose from US tariffs (up to 50%) on Indian imports linked to Russian oil purchases, but PM Modi and President Trump expressed confidence in a deal during recent exchanges. India is offering “future-proof” most-favored-nation status to expedite. Minister Goyal confirmed active dialogue on September 10, 2025, emphasizing reciprocal benefits despite high tariffs.

4. Oman

Country Details: Oman, a Gulf Cooperation Council (GCC) member with a $108 billion GDP, is a key energy partner for India, supplying 10% of its crude oil needs. Bilateral trade is $12 billion, dominated by petroleum and petrochemicals.

Current Status: Negotiations are in advanced stages, with finalization expected within weeks as of September 10, 2025. Minister Goyal stated the deal is “just weeks away,” focusing on energy security, investment, and tariff reductions. This would be India’s second GCC FTA after the UAE, enhancing maritime trade routes.

5. Eurasian Economic Union (EAEU)

Bloc Details: The EAEU includes Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia, with a combined GDP of $2.4 trillion. India-Russia trade alone is $65 billion, driven by defense, energy, and fertilizers.

Current Status: Terms of Reference (ToR) for FTA negotiations were signed on August 20, 2025, in Moscow, following virtual meetings in January. This formalizes talks to diversify India’s partnerships amid US tensions. Focus areas include goods, services, and customs cooperation; first round expected soon. The deal aligns with India’s strategy to balance relations with Russia despite Western pressures.

6. New Zealand

Country Details: New Zealand, with a $250 billion GDP, offers opportunities in dairy, agriculture, and services. Bilateral trade is $1.7 billion, with potential for growth in wine, machinery, and education.

Current Status: Negotiations launched in March 2025 with an ambitious 60-day target, but progressing steadily. Active dialogue confirmed by Minister Goyal on September 10. Covers comprehensive economic partnership, including digital trade; expected conclusion by late 2025 or early 2026.

7. Australia

Country Details: Australia’s $1.7 trillion economy complements India’s in mining, education, and agriculture. The existing Economic Cooperation and Trade Agreement (ECTA, effective 2022) has boosted trade to $26 billion.

Current Status: Talks to upgrade ECTA to a Comprehensive Economic Cooperation Agreement (CECA) are ongoing, with expansion into services and investment. Minister Goyal highlighted progress in September 2025, aiming for finalization by year-end.

Other Notable Discussions

Qatar: Exploring FTA to double trade to $28 billion by 2030. Terms of reference to be finalized in early October 2025; focus on energy and LNG.

Israel: Signed Bilateral Investment Treaty (BIT) on September 10, 2025, paving way for FTA negotiations. Cumulative investments: $443 million from India, $334 million from Israel.

Canada: Relaunched in 2022 but paused since September 2023; mutual decision on resumption pending.

Peru and Chile: Early-stage FTA/CEPA talks; Peru focuses on minerals, Chile on copper and wine.

ASEAN: Reviewing existing FTA; next round in February 2025 for updates on rules of origin and services.

Challenges and Strategic Imperatives

While progress is evident, hurdles remain: protectionism in sensitive sectors, geopolitical pressures (e.g., US tariffs on Russian oil-linked imports), and non-tariff barriers like CBAM. India’s approach emphasizes “win-win” outcomes, with FTAs projected to add $1 trillion to its digital economy by 2025. Globally, these deals mitigate risks from US-China tensions and enhance resilience.

Minister Goyal noted on September 12, 2025, that the auto sector views the EU FTA as “exciting,” potentially fostering R&D and collaboration. Overall, these negotiations position India as a bridge between developed and emerging markets.

Conclusion

As of September 15, 2025, India stands on the cusp of transformative trade pacts, with the UK deal already signed and EU/US/Oman agreements imminent. These FTAs could unlock $500 billion in investments and exponential export growth, aligning with India’s 2047 development goals. By fostering balanced, future-ready frameworks, India is not just signing agreements but building enduring global partnerships. Stakeholders must monitor ratification timelines and implementation to realize full potential.