India's FTA Tracker 2026: Every Active Agreement

India's FTA Landscape in 2026: A Strategic Transformation

India's trade agreement strategy has undergone a radical transformation. Between 2021 and January 2026, India concluded more bilateral trade agreements than in the previous two decades combined. The country now has seven in-force free trade agreements covering 19 countries, with the landmark UK CETA and India-EU FTA concluded and awaiting entry into force, and six additional negotiations in progress. Combined, these agreements encompass a substantial share of India's total trade volume.

For foreign companies operating in or exporting to India, understanding the full FTA landscape is essential for tariff optimization, supply chain design, and entity structure planning. Each agreement offers distinct benefits — from zero-duty market access to investment commitments and professional mobility provisions. This tracker provides a complete, current reference organized by agreement status, key provisions, and practical implications.

Companies evaluating Foreign Direct Investment (FDI) in India should align their market entry strategy with applicable FTA benefits, as the two frameworks interact to determine effective cost structures.

Active Free Trade Agreements: In Force

1. India-ASEAN Trade in Goods Agreement (AITIGA)

India's largest regional trade agreement covers 10 ASEAN member states. India eliminated tariffs on over 74% of its tariff lines for ASEAN goods. The agreement is currently undergoing a major review to address tariff asymmetries, add digital trade provisions, and tighten rules of origin. The upgraded agreement is expected through 2026-27.

Singapore accounts for 97.6% of ASEAN FDI into India (USD 164 billion cumulative). For companies using Singapore as a holding company jurisdiction for Indian investments, the ASEAN framework interacts with the India-Singapore DTAA. Our detailed analysis covers the India-ASEAN FTA upgrade and its implications.

2. India-South Korea Comprehensive Economic Partnership Agreement (CEPA)

The India-South Korea CEPA was India's first comprehensive bilateral trade agreement. It covers goods, services, investment, and economic cooperation. Tariff elimination applies to approximately 85% of Korean exports and 93% of Indian exports by value. Enhancement negotiations are ongoing to modernize the agreement with updated provisions on digital trade, environmental standards, and expanded services market access.

Samsung, Hyundai, LG, and Kia — all major Korean investors in India — benefit from CEPA tariff preferences for components and capital goods. Companies establishing private limited companies in India from South Korea should assess CEPA benefits during entity structuring.

3. India-Japan Comprehensive Economic Partnership Agreement (CEPA)

The India-Japan CEPA eliminated or reduced tariffs on approximately 90% of bilateral trade over a 10-year period. Japan is India's largest source of official development assistance (ODA) and a major investor in infrastructure, automotive, and electronics manufacturing.

Japanese companies benefit from specific provisions on customs valuation, mutual recognition of AEO status, and enhanced dispute resolution. For companies from Japan considering India operations, the Japan country guide covers entity registration requirements.

4. India-Mauritius Comprehensive Economic Cooperation and Partnership Agreement (CECPA)

India's first trade agreement with an African country covers 310 export items for India and provides Mauritius with duty-free access on 376 products plus reduced duties on 127 products. Both countries provide market access on over 100 services subsectors including financial services, telecommunications, and professional services. Cooperation spans 25 priority sectors including pharmaceuticals, agro-industry, SMEs, and ICT.

5. India-UAE Comprehensive Economic Partnership Agreement (CEPA)

The India-UAE CEPA is the most commercially successful of India's recent agreements. Results speak clearly: bilateral merchandise trade nearly doubled from USD 43.3 billion in FY2020-21 to USD 83.7 billion in FY2023-24, crossing USD 100 billion in FY2024-25.

The UAE eliminated duties on 97.4% of tariff lines (99% of Indian imports by value). India eliminated duties on over 80% of tariff lines (90% of exports by value). Gems and jewelry trade surged 35% from USD 20.88 billion to USD 28.15 billion. Over 54,000 preferential Certificates of Origin were issued in the agreement's first 11 months, indicating high business uptake.

For companies from the UAE investing in India, understanding the FEMA framework and FDI advisory requirements is critical alongside CEPA provisions. See our UAE country guide for registration details.

6. India-Australia Economic Cooperation and Trade Agreement (ECTA)

The India-Australia ECTA was the first trade agreement India signed in over a decade at the time. Australia eliminated tariffs on 96.4% of tariff lines (98.3% by value). India offered preferential access on 70.3% of tariff lines (76.5% by value). Key sectors benefiting include mining, agriculture, education services, and professional services.

A broader Comprehensive Economic Cooperation Agreement (CECA) is under negotiation to expand coverage to investment, government procurement, and additional services sectors. For Australian companies, our Australia country guide details entity registration requirements.

7. India-EFTA Trade and Economic Partnership Agreement (TEPA)

The EFTA-India TEPA concluded 16 years of negotiations and includes a landmark USD 100 billion investment commitment expected to create 1 million new jobs in India over 15 years. EFTA states eliminate duties on 99.6% of India's export value. India reduces duties on approximately 95% of EFTA's export value.

Notably, the TEPA includes India's first legally binding commitments on trade and sustainable development, covering environmental protection and labor standards. Swiss pharmaceutical, financial services, and watch industry companies benefit from reduced tariffs and enhanced IP protections. For companies from the EFTA-India TEPA, our detailed analysis covers the investment implications.

Concluded But Not Yet In Force

8. India-UK Comprehensive Economic and Trade Agreement (CETA)

After 14 rounds of negotiations beginning in 2022, the India-UK CETA provides 99% duty-free access for Indian exports to the UK. The UK will eliminate customs duties on 100% of its tariff lines over seven years. A target to double bilateral trade to USD 112 billion by 2030 has been set.

The innovative Double Contribution Convention exempts Indian workers and their employers from UK social security contributions for three years. For UK companies, the CETA combined with India's extensive DTAA network creates a favorable tax environment. Our UK country guide covers registration requirements. The CETA is expected to enter into force in April 2026 after UK parliamentary and Indian cabinet ratification.

9. India-EU Free Trade Agreement

The largest trade deal either India or the EU has concluded. India will eliminate tariffs on 86% of tariff lines (93% by value); the EU eliminates on over 90% of tariff lines (91% by value). The 20-chapter agreement covers goods, services, digital trade, intellectual property, and professional mobility. Car tariffs drop from 110% to 10% over five years. Machinery tariffs of up to 44% are mostly eliminated.

For a comprehensive sector-by-sector analysis, see our India-EU FTA guide for European companies.

10. India-New Zealand Free Trade Agreement

One of India's fastest-concluded FTAs. New Zealand eliminates tariffs on 100% of its 8,284 tariff lines from entry into force. India gains zero-duty access for all goods exports to New Zealand. New Zealand gains concessions on about 70% of India's tariff lines (95% of NZ export value). Core dairy products are excluded from tariff liberalization to protect Indian farmers.

New Zealand committed to NZD 20 billion investment in India over 15 years and created dedicated professional mobility pathways including 5,000 Temporary Employment Entry visas for Indian professionals.

11. India-Oman Comprehensive Economic Partnership Agreement (CEPA)

Oman's first bilateral trade agreement in nearly two decades. Oman offers zero-duty access on 98.08% of tariff lines (99.38% of Indian exports by value). India liberalizes 77.79% of tariff lines (94.81% of imports from Oman by value). A landmark provision is Oman's commitment on Traditional Medicine (AYUSH) across all modes of supply — the first such commitment by any country. The CEPA also increases the intra-corporate transfer quota from 20% to 50%.

Under Active Negotiation

India-GCC Free Trade Agreement

Formally launched February 24, 2026 with a Joint Statement signed by Commerce Minister Goyal and GCC Secretary General Albudaiwi. The GCC (Saudi Arabia, UAE, Kuwait, Qatar, Bahrain, Oman) is India's largest trading partner bloc at USD 178.56 billion (FY2024-25). First negotiating round expected in the second half of 2026. Key sectors: food processing, infrastructure, petrochemicals, ICT. For our detailed analysis, see India-GCC FTA: What Gulf Businesses Should Prepare.

India-United States Framework Agreement

A framework for an interim trade agreement was delivered on February 7, 2026. This is not a comprehensive FTA but a targeted framework covering specific trade facilitation measures. Full FTA negotiations have not been formally launched.

India-Peru Free Trade Agreement

Nine rounds of negotiations completed, most recently in November 2025. The next round was planned for January 2026. Covers goods, services, and investment with a focus on mining, agricultural products, and pharmaceuticals.

India-Chile Comprehensive Economic Partnership Agreement (CEPA)

Negotiations launched April 2025 with four rounds completed through December 2025. India and Chile are building on their existing Preferential Trade Agreement (PTA) to create a comprehensive partnership.

India-Australia CECA (Upgrade)

Negotiations ongoing to upgrade the 2022 ECTA into a broader Comprehensive Economic Cooperation Agreement covering investment, government procurement, and expanded services.

India-Israel Free Trade Agreement

India is in FTA talks with Israel as part of its broader strategy to diversify trade partnerships. Negotiations cover goods, services, and technology cooperation.

Regional and Preferential Trade Agreements

Beyond bilateral FTAs, India participates in several regional frameworks:

• Asia-Pacific Trade Agreement (APTA): Covers Bangladesh, China, South Korea, Laos, Mongolia, and Sri Lanka — preferential tariff concessions on select product lists
• South Asian Free Trade Area (SAFTA): Regional agreement among SAARC members including Bangladesh, Sri Lanka, Nepal, Bhutan, Maldives, Pakistan, and Afghanistan
• India-Mercosur PTA: Preferential trade agreement with Brazil, Argentina, Uruguay, and Paraguay. On October 16, 2025, India and Brazil announced a joint declaration to expand this PTA to include both tariff and non-tariff issues
• India-Thailand Early Harvest Scheme: Limited preferential arrangement covering 82 product categories

Notably, India is not a member of the Regional Comprehensive Economic Partnership (RCEP), having withdrawn in 2019 over concerns about Chinese competition. RCEP entered into force in January 2022 without India, though accession procedures remain available.

How FTAs Interact with India's FDI Framework

FTA tariff benefits apply to goods trade, but the investment provisions in modern FTAs also affect how foreign companies structure their India presence. Key interactions include:

• Entity structure: Companies from FTA partner countries may find specific entity types — wholly owned subsidiaries, branch offices, or liaison offices — more advantageous depending on FTA provisions for services, investment protection, and professional mobility.
• Transfer pricing: FTA-driven tariff changes affect intercompany pricing for goods flowing between parent and subsidiary. Transfer pricing documentation must reflect arm's length pricing under the new tariff regime.
• FEMA compliance: FTA investment protections operate alongside — not instead of — India's FEMA regulations. FC-GPR filings and FLA returns remain mandatory regardless of FTA status.
• DTAA optimization: Companies should combine FTA tariff benefits with applicable DTAA provisions for reduced withholding tax on dividends, interest, and royalties to maximize overall tax efficiency.

For a comprehensive guide to India's FDI framework, see our Complete Guide to FDI in India.

Key Takeaways

• India now has 7 in-force FTAs covering 19 countries (ASEAN, South Korea, Japan, Mauritius, UAE, Australia, and EFTA), with the UK CETA, India-EU FTA, New Zealand, and Oman agreements concluded and awaiting entry into force, and 6 under negotiation — the most aggressive FTA expansion in India's history.
• The India-UAE CEPA is the model for success: bilateral trade nearly doubled to USD 100+ billion within three years, with over 54,000 preferential certificates of origin issued.
• The India-EU FTA is the largest deal by trade volume (EUR 120 billion), covering 27 member states with tariff elimination on 86-90% of tariff lines.
• Investment commitments accompany trade liberalization: EFTA pledged USD 100 billion, New Zealand NZD 20 billion — signaling India's strategy to link trade access with capital inflows.
• Six negotiations are in progress: GCC (formally launched Feb 2026), US (framework stage), Peru, Chile, Australia (CECA upgrade), and Israel — expanding India's FTA network further.
• Every FTA interacts with India's FDI, FEMA, and tax frameworks. Companies must plan FTA benefits alongside entity structure, transfer pricing, and regulatory compliance to maximize commercial advantage.