A stable rating attracts capital, but real economic gains come from market access. In 2025, India closed more major trade deals than any single year of the past decade.
If 2025 had a single foreign economic theme for India, it would be free trade agreements. The India UK Comprehensive Economic and Trade Agreement was signed in July, the India EFTA Trade and Economic Partnership Agreement entered into force in October, the India Oman CEPA was signed in December, and the India New Zealand FTA was finalised by the end of the year. Together, these deals redefine India’s trade map.
India UK CETA
The India UK Comprehensive Economic and Trade Agreement was signed on 24 July 2025. It targets implementation by mid 2026. About 99 percent of Indian exports get duty free access to the UK market. Textiles and clothing earlier facing UK tariffs of up to 12 percent see complete liberalisation. Leather and footwear move from up to 16 percent to zero. Processed foods see zero duty on around 99.7 percent of tariff lines.
India EFTA TEPA
The India European Free Trade Association deal links India with Switzerland, Norway, Iceland, and Liechtenstein. It was signed in March 2024 and entered into force on 1 October 2025. EFTA has committed to mobilise 100 billion US dollars of investment in India over 15 years and create one million direct jobs. This is the first written investment commitment of this scale in any Indian FTA.
India Oman CEPA
Signed in Muscat on 18 December 2025, this is India’s second FTA with a Gulf Cooperation Council country after the UAE. India gets duty free access on around 98.08 percent of Oman’s tariff lines, covering 99.38 percent of Indian exports by value. Oman has committed market access in 127 services sub sectors including IT, business, education, and health.
India New Zealand FTA
Negotiations concluded in December 2025. The deal will cut or eliminate tariffs on around 95 percent of New Zealand’s exports to India and offer duty free access to all Indian goods in the New Zealand market. New Zealand has pledged about 20 billion US dollars of investment over 15 years. Sensitive sectors such as dairy are protected from the Indian side.
India’s 2025 FTA Snapshot
| Agreement | Status | Key Highlight |
| India UK CETA | Signed July 2025 | 99 percent Indian exports duty free in UK |
| India EFTA TEPA | In force October 2025 | 100 billion dollar investment commitment |
| India Oman CEPA | Signed December 2025 | Second GCC FTA after UAE |
| India New Zealand FTA | Concluded December 2025 | 20 billion dollar NZ investment pledge |
| India EU FTA | Finalised January 2026 | Major DM market opens |
A Real Aspirant Story
Imagine a small textile exporter named Meena from Surat. Earlier her shipments to the UK faced tariffs of 9 to 12 percent. After the UK CETA, those duties drop to zero. She is suddenly competitive with suppliers from Bangladesh and Vietnam. The same applies to leather entrepreneurs in Kanpur and gems exporters in Jaipur. That is how a paper agreement turns into actual jobs and order books.
Quiz: India’s Trade Deals 2025
Q1. On which date was the India UK Comprehensive Economic and Trade Agreement signed?
(A) 6 May 2025
(B) 24 July 2025
(C) 1 October 2025
(D) 18 December 2025
Answer: (B) 24 July 2025. The India UK CETA was signed on 24 July 2025.
Q2. When did the India EFTA Trade and Economic Partnership Agreement enter into force?
(A) 10 March 2024
(B) 24 July 2025
(C) 1 October 2025
(D) 18 December 2025
Answer: (C) 1 October 2025. The India EFTA TEPA entered into force on 1 October 2025.
Q3. Which four countries form the European Free Trade Association?
(A) UK, France, Germany, Italy
(B) Switzerland, Norway, Iceland, Liechtenstein
(C) Sweden, Denmark, Finland, Norway
(D) Spain, Portugal, Greece, Cyprus
Answer: (B) Switzerland, Norway, Iceland, Liechtenstein. EFTA consists of Switzerland, Norway, Iceland, and Liechtenstein.
Q4. The India Oman CEPA is India’s second free trade agreement with which group of countries?
(A) ASEAN
(B) European Union
(C) Gulf Cooperation Council
(D) BRICS
Answer: (C) Gulf Cooperation Council. The India Oman CEPA is India’s second FTA with a Gulf Cooperation Council country, after the UAE.
Q5. What investment did EFTA commit to mobilise in India under the TEPA?
(A) 20 billion US dollars
(B) 50 billion US dollars
(C) 100 billion US dollars
(D) 200 billion US dollars
Answer: (C) 100 billion US dollars. EFTA committed to mobilise 100 billion US dollars of investment in India over 15 years.
FAQs: India’s Trade Deals 2025
Which major trade deals did India sign in 2025?
India signed the India UK CETA in July 2025, saw the India EFTA TEPA enter into force in October 2025, signed the India Oman CEPA in December 2025, and concluded the India New Zealand FTA by the end of 2025.
What does the India UK CETA offer Indian exporters?
The India UK CETA gives about 99 percent of Indian exports duty free access to the UK market, benefiting textiles, leather, processed foods, and gems and jewellery.
What is special about the India EFTA TEPA?
The EFTA bloc committed to mobilise 100 billion US dollars of investment in India over 15 years and create one million direct jobs, the first such written commitment in any Indian trade deal.
Is the India Oman CEPA India’s first Gulf trade deal?
No, the India Oman CEPA is India’s second free trade agreement with a Gulf Cooperation Council country, after the UAE deal of 2022.
Are sensitive sectors protected in these trade deals?
Yes, sectors such as dairy and certain agricultural products are protected from the Indian side in deals like the India New Zealand FTA.
Bridge to the Next Topic
While India was opening new markets, the United States was raising tariffs in a very public way. India’s response to this pressure became a case study in calibrated diplomacy. Read here
[…] A confident economy at home must also play smart on the world stage. India’s response to global trade has been a mix of new free trade agreements and a calm handling of US tariff pressures. Let us look at the trade deal story next. Read here […]