Crucially, CETA extends beyond goods to services, an area where India enjoys a comparative advantage. India’s services exports to the UK stood at over $19.8 billion in 2023, and the agreement is expected to expand this further
India accelerated efforts to diversify and deepen its global trade partnerships in 2025, seeking to cushion its economy against mounting uncertainties in international markets triggered largely by tariff disruptions in the United States and broader geopolitical shifts.
The year marked a significant push in India’s trade diplomacy, with the signing of major free trade agreements (FTAs) with the United Kingdom, New Zealand and Oman, alongside steady progress in negotiations with the European Union. Together, these agreements are expected to boost exports, enhance competitiveness, attract quality foreign investment and provide Indian businesses access to advanced technologies and premium global markets.
Government officials say India has secured fair and balanced outcomes in these agreements, ensuring wider access for manufactured goods and skilled professionals while safeguarding sensitive domestic sectors, particularly agriculture. Protecting farmers’ livelihoods has remained a central priority even as the country pursues greater integration with the global economy.
A landmark achievement came in July with the conclusion of the Comprehensive Economic and Trade Agreement (CETA) with the United Kingdom. The deal grants duty-free access to 99 per cent of India’s exports to the UK, covering almost the entire trade value. Labour-intensive sectors such as textiles, leather, marine products, gems and jewellery, engineering goods, chemicals and auto components are expected to be major beneficiaries.
Crucially, CETA extends beyond goods to services, an area where India enjoys a comparative advantage. India’s services exports to the UK stood at over $19.8 billion in 2023, and the agreement is expected to expand this further. In a first for the UK, the pact also eases mobility for Indian professionals across IT, healthcare, finance and education, offering streamlined entry routes for business visitors, contractual service suppliers, independent professionals and intra-corporate transferees.
Another major development was the operationalisation in October of the Trade and Economic Partnership Agreement with the European Free Trade Association (EFTA) countries — Switzerland, Norway, Iceland and Liechtenstein — originally signed in 2024. The agreement improves market access for more than 99 per cent of India’s exports, including pharmaceuticals, engineering goods and services. EFTA nations have also committed to investing $100 billion in India, a move expected to generate one million jobs.
India further strengthened its Asia-Pacific footprint with the signing of a free trade agreement with New Zealand this month. The pact ensures zero duty on 100 per cent of India’s exports and is expected to benefit farmers, MSMEs, artisans, women-led enterprises and youth. Sectors such as textiles, apparel, leather, footwear, automobiles, electronics, machinery, plastics, pharmaceuticals and chemicals are set to gain significantly.
New Zealand has also committed to facilitating $20 billion in foreign direct investment into India over the next 15 years, targeting manufacturing, infrastructure, services, innovation and employment generation. The agreement opens fresh opportunities for India’s services sector, including IT and ITeS, finance, education, tourism and construction, while special annexes on health, traditional medicine, student mobility and post-study work offer new avenues for Indian professionals and students.
India’s outreach to the Gulf region was reinforced with the signing of the Comprehensive Economic Partnership Agreement with Oman in December during Prime Minister Narendra Modi’s visit to Muscat. Oman has offered zero-duty access on over 98 per cent of its tariff lines, covering nearly all Indian exports. The agreement delivers full tariff elimination across key labour-intensive sectors and provides expansive commitments in services ranging from business and professional services to education, healthcare and research.
Commerce and Trade Minister Piyush Goyal said the growing global interest in deepening ties with India reflects the country’s strong economic growth, rising consumer demand and emphasis on sustainable development, positioning it as a key trade partner in an increasingly uncertain world.
