India’s FTA Gambit 2026: Implementation, Expansion, and Strategic Realignment

India’s foreign trade landscape in 2026 is being reshaped by a new generation of free trade agreements (FTAs) and a strategic push toward export market diversification.

A major milestone came in January 2026 with the conclusion of the India-European Union (EU) Free Trade Agreement, widely considered one of India’s most ambitious trade pacts to date. Once implemented, the agreement is expected to significantly deepen India’s integration with European markets, facilitate regulatory alignment, and strengthen participation in global supply chains spanning manufacturing, services, and digital trade.

The India FTA Tracker 2026 provides businesses and investors with a consolidated overview of India’s evolving trade architecture, highlighting the latest economic engagements, newly concluded agreements, ongoing negotiations, and regulatory developments shaping market access opportunities. For companies engaged in international trade, supply chain management, and cross-border investment, understanding these agreements is essential for navigating tariff benefits, rules of origin requirements, and emerging regulatory standards across India’s expanding trade corridors.

Economic and trade engagements: October

India-NZ FTA Rules of Origin notified on 12 October 2026

India has notified the Customs Tariff (Determination of Origin of Goods under the Free Trade Agreement between India and New Zealand) Rules, 2026, on 12 October 2026. The rules establish product-specific origin criteria, qualifying value content (QVC) requirements, and documentation procedures for claiming preferential customs duty treatment. They also allow qualifying goods to retain their originating status when shipped through third countries, subject to restrictions on further processing and continued customs control. The rules of origin will come into effect on 20 October 2026.

Economic and trade engagements: September

India-EU FTA to be signed on 16 December 2026

According to a report published by The Hindu on 24 September 2026, India and the European Union (EU) are expected to sign their Free Trade Agreement (FTA) on 16 December 2026. The agreement has reportedly secured “majority approval” in Europe and, subject to the European Council’s approval, would not require separate ratification by each EU member state.

Following the signing, the agreement will require approval by the European Parliament, a process expected to take another one to two months. This could pave the way for the FTA to become operational in early 2027.

India-New Zealand FTA to take effect on 20 October 2026

The central government has announced that the India-New Zealand Free Trade Agreement (FTA) will enter into force on 20 October 2026. The agreement aims to strengthen bilateral trade by providing preferential market access, facilitating US$20 billion in investment into India, and expanding opportunities in services and professional mobility.

Upon implementation, New Zealand will eliminate tariffs on 100 per cent of tariff lines covering India’s exports, granting Indian exporters duty-free access across all product categories. In return, India has offered tariff concessions on 70.03 percent of its tariff lines, covering approximately 95 per cent of the current bilateral trade value.

India has also undertaken market-access commitments across 106 service sectors and sub-sectors, including financial, telecommunications, environmental, and professional services. The agreement further provides for foreign commercial presence in specified financial services activities, with India allowing foreign direct investment (FDI) of up to 74 per cent in the insurance sector and foreign private-sector banks, subject to applicable conditions.

India-MERCOSUR

India and the MERCOSUR bloc signed the First Additional Protocol to their Preferential Trade Agreement (PTA) on 14 September 2026 to facilitate the use and acceptance of electronic Certificates of Origin (CoOs). Under the protocol, electronic CoOs will carry the same legal validity and evidentiary value as paper-based certificates, streamlining origin verification and documentation for preferential trade.

The protocol does not alter existing tariff concessions under the PTA. Instead, it modernises origin-certification procedures, supporting more efficient administration of preferential trade between India and MERCOSUR member countries.

Separately, India and MERCOSUR have initiated negotiations to expand the scope of their PTA, with the objective of creating additional trade and business opportunities for private-sector enterprises on both sides. The two parties are working to finalise the Terms of Reference (ToR), which will define the scope and framework for the proposed expansion.

18th BRICS Summit

The 18th BRICS Summit, held in New Delhi on 12-13 September 2026, marked the conclusion of India’s year-long BRICS chairship and culminated in the adoption of the New Delhi Declaration. The two-day summit addressed a broad range of economic cooperation priorities, including the Strategy for BRICS Economic Partnership 2030, cross-border payments, the proposed New Investment Platform, MSME financing, customs cooperation, resilient supply chains, and technology collaboration.

A key India-specific initiative discussed at the summit was the proposal to establish a BRICS Risk Lab at Gujarat’s GIFT City International Financial Services Centre (IFSC). The proposed facility is intended to support cooperation on risk assessment and related financial-sector capabilities within the BRICS framework.

Economic and Trade Engagements: August

India-Chile advance CEPA negotiations

India and Chile are advancing negotiations for a Comprehensive Economic Partnership Agreement (CEPA) to build on their existing PTA, in force since 2007 and expanded in 2017. On 26 August 2026, India’s Commerce Secretary Rajesh Agrawal met Paula Estévez Weinstein, Vice-Minister of International Economic Relations of Chile, in Santiago to discuss progress on the proposed agreement.

The discussions highlighted opportunities to expand economic cooperation across key sectors, including healthcare, pharmaceuticals, energy, minerals, agriculture, machinery, and engineering. A successful conclusion of CEPA negotiations is expected to further strengthen the growing trade and economic partnership between the two countries.

India and SACU sign Terms of Reference (ToR) for PTA negotiations

On 12 August 2026, India and the Southern African Customs Union (SACU) signed the Terms of Reference (ToR) to initiate negotiations for a Preferential Trade Agreement (PTA). The proposed agreement aims to build on existing commercial ties by providing preferential market access and expanding trade opportunities across sectors with complementary strengths.

India’s Union Commerce Minister highlighted the country’s potential to support the SACU region through affordable medicines and IT-sector skill development. He also underscored opportunities to deepen cooperation in engineering goods, machinery, automobiles, pharmaceuticals, textiles, agriculture, and agri-processing. The negotiations seek to strengthen existing trade relations and unlock further opportunities for businesses across both regions.

Economic and Trade Engagements: July

India-UK CETA and Social Security Agreement enter into force

The India-United Kingdom Comprehensive Economic and Trade Agreement (CETA), alongside the Agreement on Social Security, also known as the Double Contribution Convention (DCC), officially entered into force on 15 July 2026.

Under CETA, Indian businesses gain preferential, including duty-free, access to approximately 99 per cent of UK tariff lines, covering nearly all Indian exports to the UK. In return, India has committed to reducing or eliminating tariffs on 90 percent of tariff lines, covering around 92 per cent of the UK’s current exports to India.

The agreement is expected to create new opportunities across key sectors, including textiles, leather, gems and jewellery, engineering goods, marine products, chemicals, and processed foods.

On the first day of implementation, more than 50 export consignments valued at over US$140 million were dispatched to the UK. The consignments originated from more than 20 locations across India, including ports, airports, Inland Container Depots (ICDs), Special Economic Zones (SEZs), and manufacturing facilities.

First round of India-Maldives FTA negotiations

India and the Maldives successfully concluded the first round of negotiations for a proposed Free Trade Agreement (FTA). The negotiations were conducted virtually from 29 June to 7 July 2026.

As the two countries commemorate 60 years of diplomatic relations, both sides reaffirm their stance on accelerating negotiations for the FTA and the Bilateral Investment Treaty (BIT). They also agreed to deepen cooperation in areas such as tourism, startups, digital payments, MSMEs, and trade to expand commercial opportunities and promote economic engagement between the two countries.

Economic and Trade Engagements: June

India-Oman CEPA goes live

The India–Oman Comprehensive Economic Partnership Agreement (CEPA) came into effect on 1 June 2026, strengthening India’s trade and strategic engagement with Oman and the wider Gulf Cooperation Council (GCC) region. The agreement extends beyond tariff liberalisation to cover trade in goods and services, professional mobility, regulatory cooperation, safeguards against non-tariff barriers, and other areas of economic collaboration.

Under the agreement, Oman has granted duty-free access to 99.38 per cent of India’s exports by value, covering 98.08 per cent of its tariff lines. India, in turn, has offered tariff concessions on 77.79 per cent of its tariff lines, covering 94.81 per cent of imports from Oman by value, while retaining protections for sensitive domestic sectors.

To safeguard domestic industries and manufacturing competitiveness, the agreement also incorporates Tariff Rate Quotas (TRQs) and minimum import price (MIP) mechanisms for selected sensitive industrial and agricultural products.

India-US continue BTA negotiations

India and the United States continued negotiations on their proposed Bilateral Trade Agreement (BTA) during a visit by a delegation from the Office of the United States Trade Representative (USTR), led by its chief negotiator, from 1 to 4 June 2026.

The two sides held discussions on a range of issues, including trade in goods, non-tariff measures, customs and trade facilitation, economic security alignment, and other areas of mutual interest. The discussions are a part of ongoing efforts to advance negotiations and strengthen bilateral trade and economic cooperation.

Economic and Trade Engagements: May

12th round of India-South Korea CEPA upgrade negotiations

The 12th round of negotiations to upgrade the India-Korea Comprehensive Economic Partnership Agreement (IK CEPA) took place from 25 to 27 May 2026. Both sides acknowledged the significant increase in India’s bilateral trade deficit since the agreement came into force in 2010 and agreed to address the issue within the existing CEPA framework.

The discussions covered key areas, including Trade in Goods (TiG), Trade in Services (TiS), Rules of Origin (RoO), Origin Procedures (OP), investment, and Sanitary and Phytosanitary (SPS) standards. The negotiations form part of ongoing efforts to update the agreement and address evolving bilateral trade priorities.

India-Canada CEPA negotiations regain momentum

India and Canada intensified efforts to strengthen bilateral trade and economic ties during the Indian Union Commerce Minister’s three-day visit to Canada, beginning 25 May 2026. The minister led India’s largest-ever business delegation to Canada, comprising industry leaders from more than 100 companies. The visit covered Ottawa on 25 May and Toronto from 26 to 27 May, with a key focus on advancing negotiations for the proposed India-Canada Comprehensive Economic Partnership Agreement (CEPA).

Both countries reportedly reaffirmed their goal to conclude a mutually beneficial agreement by the end of 2026.

CEPA negotiations have progressed since the two countries signed the Terms of Reference (ToR) in March 2025. Following the first round of virtual negotiations in March 2026, the second round concluded on 8 May 2026.

India-EFTA TEPA

India’s Commerce Secretary visited Switzerland on 6-7 May 2026 to review progress on implementing the India-EFTA Trade and Economic Partnership Agreement (TEPA) and deepen bilateral trade and investment ties.

Under TEPA, EFTA has committed to providing improved market access across 92.2 per cent of its tariff lines, covering 99.6 per cent of India’s exports. The agreement also provides tariff concessions for processed agricultural products.

During the visit, India’s Commerce Secretary addressed a high-level business roundtable on 7 May 2026, attended by senior representatives from leading Swiss companies and institutions. The discussions explored opportunities to expand investment, strengthen economic cooperation, and advance the implementation of TEPA.

Economic and trade engagements: April

India-New Zealand FTA: Key highlights

India and New Zealand signed a Free Trade Agreement (FTA) on 27 April 2026, granting Indian exporters full duty-free access to the New Zealand market upon entry into force, while India will liberalise tariffs on around 70 per cent of tariff lines covering 95 per cent of bilateral trade. Concluded within nine months, the agreement signals an accelerated approach to comprehensive trade negotiations and builds on talks finalised in December 2025.

The FTA is expected to enhance competitiveness across labour-intensive and manufacturing sectors, including textiles, engineering goods, and processed foods, while safeguarding sensitive segments such as dairy and select agricultural products. It also includes commitments on services, mobility, and investment, supporting broader economic integration.

Bilateral trade, which reached approximately US$2.4 billion in 2024, is projected to expand further through improved market access, supply chain integration, and regulatory cooperation.

Denmark economic engagement with India through institutional collaboration

With the anticipated ratification of the India-EU FTA to be completed by the end of 2026, Denmark has taken a strategic leap to deepen its commercial ties with India. This is reflected in the launch of the Indian Danish Chamber of Commerce (IDCC) in New Delhi on 8 April 2026.

The IDCC is expected to serve as a strategic platform for Danish companies already present in India, as well as those exploring market entry. By facilitating trade, investment, and cross-border partnerships, the chamber aims to provide structured support and strengthen business linkages between the two countries.

According to Mads Schlosser, Director of the Chamber, India-Denmark trade relations, built on more than four centuries of engagement, are currently gaining renewed momentum, driven by increasing interest from Danish enterprises. He further noted that the prospective India-EU FTA is expected to unlock additional avenues for bilateral cooperation and investment.

Economic and trade engagements: March

India-Japan CEPA joint committee meeting

The 7th Joint Committee Meeting under the India-Japan CEPA was held in Tokyo on 2 March 2026. The meeting, co-chaired by India’s Commerce Secretary and senior officials from Japan’s foreign ministry, focused on improving implementation of the agreement and promoting more balanced trade.

Key areas highlighted included the following:

• Expanding exports in textiles, pharmaceuticals, agriculture, and services
• Strengthening cooperation in advanced manufacturing and supply chains
• Improving trade facilitation and investment promotion

Officials also held discussions with Japan’s Ministry of Economy, Trade and Industry on broader economic cooperation and coordination.

India-Canada CEPA negotiations launched

India and Canada formally launched negotiations for CEPA on 2 March 2026. The Terms of Reference (ToR) were signed here in New Delhi by India’s Minister of Commerce and Industry and Canada’s Minister of International Trade, in the presence of the prime ministers of both countries. 

The agreement aims to expand bilateral trade to US$50 billion by 2030 and cover goods, services, and investment cooperation.

Economic and trade engagements: February

India-Brazil: Expanding strategic trade partnership

During the visit of Brazilian President Luiz Inácio Lula da Silva on 21 February 2026, India and Brazil agreed to double bilateral trade to US$30 billion by 2030.

India’s Prime Minister Narendra Modi and Lula emphasised stronger cooperation across critical minerals, steel supply chains, renewable energy, digital technologies, and healthcare.

Some of the agreements signed included a Digital Partnership Action Plan, expanded MSME and technology collaboration, and a pharmaceutical regulatory MoU between India’s Central Drugs Standard Control Organisation (CDSCO) and Brazil’s National Health Surveillance Agency.

The 2026 discussions also covered defence and aerospace cooperation, including potential collaboration with Brazilian aircraft manufacturer Embraer.

India-US: Trade uncertainty after latest tariff ruling

On 20 February 2026, the US Supreme Court ruled against several tariffs imposed by Donald J. Trump under emergency powers.

Following the ruling, the US administration subsequently introduced a temporary 10 per cent global import tariff under Section 122 of the Trade Act of 1974, replacing earlier country-specific duties.

At the same time, the US Department of Commerce imposed preliminary countervailing duties of 125.87 per cent on solar cell imports from India following subsidy investigations.

The ruling and new tariffs have increased policy uncertainty for Indian exporters, particularly in sectors such as solar manufacturing, engineering goods, and electronics.

India has temporarily delayed high-level trade negotiations with Washington while assessing the evolving tariff framework.

India–France: Strategic partnership upgrade

India and France elevated bilateral relations to a “Special Global Strategic Partnership” following talks between Modi and Emmanuel Macron on 17 February 2026. The partnership expands cooperation across defence, aerospace, innovation, and advanced technologies.

India confirmed the procurement of 26 carrier-based Rafale-M fighter jets from Dassault Aviation and continued collaboration under the Scorpène submarine programme.

Both countries also launched the India-France Year of Innovation 2026, promoting collaboration in AI, digital technologies, healthcare, research, and startups.

Bilateral, economic, and trade engagements: January

India-EU seal “mother of all” trade deals

On 27 January 2026, Modi announced the conclusion of the India–EU FTA negotiations. The agreement establishes one of the world’s largest free trade zones between India and the EU, covering nearly two billion consumers.

It introduces phased tariff reductions, expanded market access across goods and services, and enhanced regulatory cooperation.

Earlier, on 6 January, both sides also finalised negotiations on the Financial Services Annex, enabling deeper cooperation in fintech, digital payments, and cross-border financial services.

CLICK HERE: India-EU FTA Details: FAQs on the ‘Mother of All Deals’

India-Oman’s strategic trade ties updated

India and Oman continued negotiations on the CEPA during January 2026. The proposed CEPA aims to strengthen bilateral trade through tariff liberalisation, expanded services trade, and improved investment facilitation.

The agreement is also expected to enhance professional mobility and strengthen economic integration between the two economies.

ALSO READ: India–Oman CEPA: Stronger Trade and Investment Ties

India’s FTA network: Recent conclusions and ongoing negotiations

India has broadened its trade agreement footprint rapidly, concluding eight FTAs that collectively cover 37 developed economies. According to the central government, this expansion reflects a deliberate strategy to deepen India’s engagement with advanced markets while positioning the country as a stronger participant in global trade flows.

Recently Signed/Concluded FTAs—Pending Ratification/Implementation
Agreement	Type	Status	Expected timeline
New Zealand	FTA	Signed 27 April 2026	Ratified by the NZ parliament on 16 September 2026. Rules of origin notified. FTA to come into effect on 20 October 2026.
EU	FTA	Concluded 27 Jan. 2026	Expected to be signed on 16 December 2026

Source: Asia Briefing

India’s Active Trade Negotiations in 2026
Partner/bloc	Type	Status
Chile	CEPA	Ongoing discussions
US	Bilateral Trade Agreement	Ongoing discussions
Canada	CEPA	ToR signed; negotiations resume
Peru	FTA	Active discussions
Israel	FTA	ToR signed (2025)
Gulf Cooperation Council (GCC)	FTA	ToR finalised for FTA negotiations
Australia	CECA upgrade	Negotiations ongoing

Source: Asia Briefing

Agreements Under Review / Modernisation
Agreement	Review focus
Association of Southeast Asian Nations FTA	Rules of Origin (RoO) tightening
Japan CEPA	Services & trade imbalance
South Korea CEPA	Automotive & safeguard clauses

India’s trade agreements in effect as of 2026

FTAs/Comprehensive Agreements in Force
Agreement / Partner	Type	Status (Sep. 2026)	Notes
UK	CETA	In force	Entered into force on 15 July 2026
Oman	CEPA	In force	Operational since 1 June 2026
Association of Southeast Asian Nations (ASEAN–India)	FTA (goods + services)	In force	Under review (RoO concerns)
Japan	CEPA	In force	Modernisation discussions ongoing
South Korea	CEPA	In Force	Services & auto clauses under review
Singapore	CECA	In force	Services & investment integrated
Malaysia	CECA	In force	Comprehensive coverage
Thailand	Early harvest scheme	In force	Limited product coverage
Sri Lanka	FTA	In force	Goods-focused
Nepal	Trade treaty	In force	Bilateral trade facilitation
Bhutan	Trade agreement	In force	Special bilateral arrangement
Mauritius	CECPA (2021)	In force	India’s first Africa trade pact
United Arab Emirates (UAE)	CEPA (2022)	In force	Tariff cuts on 90 per cent+ lines
Australia	ECTA (2022)	In force	CECA upgrade under negotiation
European Free Trade Association	TEPA (2024)	In force (Oct 2025)	Includes a US$100bn investment commitment

Source: Trade agreements, Department of Commerce, GoI.

India’s Preferential Trade Agreements (PTAs)
Agreement	Type	Status	Scope
Mercosur	PTA	In force	Limited tariff concessions
Chile	PTA	In force	Expanded product list
Asia-Pacific Trade Agreement (APTA)	PTA	In force	Regional tariff preferences
South Asian Free Trade Area	FTA (regional)	In force	Evolved from SAPTA
Global System of Trade Preferences	PTA	In force	Developing-country framework

Source: Asia Briefing

Bilateral Investment Treaties (BITs)
Partner	Status	Notes
UAE	BIT signed 2024	Based on 2016 Model BIT

Source: Asia Briefing

Why this FTA tracker matters for businesses

1. Expanding export opportunities

New agreements with developed markets such as the EU and the UK are expected to significantly improve tariff access for Indian exporters in sectors including textiles, engineering goods, pharmaceuticals, and marine products.

2. Supply chain diversification

India’s expanding trade network supports efforts to diversify export markets across Europe, the Middle East, and the Indo-Pacific region.

3. Manufacturing and investment growth

Trade agreements linked with investment frameworks, such as the India-EFTA trade and economic partnership agreement, encourage multinational companies to establish manufacturing and supply chain operations in India.

4. Expansion of services trade

Many recent agreements include stronger commitments in services and professional mobility, benefiting sectors such as IT services, consulting, telecommunications, and digital trade.

5. Compliance and market entry considerations

Companies seeking benefits from FTAs must closely monitor rules of origin requirements, certification and documentation procedures, tariff schedules, and regulatory standards under each agreement.

CLICK HERE TO CHECK OUT: India’s Free Trade Agreements Updates in 2025