India is actively engaging in free trade agreements (FTAs) with countries where trade connections are already growing, as highlighted in a report by Trade Finance Global. These FTAs are seen as catalysts for the existing economic progress, contributing to India’s strategic trade partnerships. The country’s trade with key FTA allies surged by 92% between fiscal year 2020-21 and FY 2024-25, surpassing the 41.5% growth in overall merchandise trade with the rest of the world.
India has significantly broadened its FTA network in recent years, establishing nine FTAs with 38 countries. The series of agreements commenced with India–Mauritius in 2021, followed by the India–UAE Comprehensive Economic Partnership Agreement in May 2022. Subsequent agreements include the India–Australia Economic and Trade Agreement, the EFTA TEPA, the India–UK CETA, the India–Oman CEPA, the India–New Zealand FTA, and the India–EU FTA. Notably, an interim agreement framework with the United States was finalized on February 7, 2026, solidifying India’s global trade presence.
These FTAs are designed to benefit various sectors, providing enhanced market access for farmers and empowering women-led MSMEs in exporting garments, leather goods, and handicrafts. The agreements prioritize safeguarding sensitive sectors such as dairy, agriculture, and domestic industries while ensuring market access protection. India’s negotiation strategy reflects its market size and economic potential, ushering in a new era of trade transformation.
