What Happened
- The Commerce Ministry confirmed that India is currently in active Free Trade Agreement (FTA) negotiations with six countries: Australia (CECA), Sri Lanka (ETCA), Peru (FTA), Chile (CEPA), Israel (FTA), and one additional partner.
- In addition, the UK-India FTA and the Oman FTA are awaiting ratification, meaning negotiations are concluded but formal legal steps remain.
- The EU-India FTA negotiations have been concluded, as have those with New Zealand.
- Separate ongoing negotiations continue with the United States and several other bilateral partners.
- This announcement signals a significant acceleration of India's trade agreement agenda following a period of relative stagnation between 2010 and 2021.
Static Topic Bridges
India's FTA Landscape: From RCEP Exit to Renewed Engagement
India walked away from the Regional Comprehensive Economic Partnership (RCEP) in November 2019, citing concerns about import surges from China and risks to domestic industry and agriculture. This was a landmark decision — India was the only major economy to exit the 15-nation bloc that now covers ~30% of global GDP. The RCEP exit marked a strategic pivot: instead of a large multilateral arrangement, India would pursue targeted bilateral agreements with specific partners where it had clearer offensive interests.
- RCEP signed November 2020 (without India); covers ASEAN-10 + China, Japan, South Korea, Australia, New Zealand.
- India's reasons for RCEP exit: risk of cheap Chinese goods flooding India through ASEAN backdoors, concerns about services and investment market access, agricultural vulnerability.
- Post-RCEP: India negotiated the Mauritius CECPA (2021), Australia ECTA (interim agreement, 2022), UAE CEPA (2022) — reviving a trade agreement agenda after a decade.
- UAE CEPA (2022): exports to UAE grew 11% in FY23 to $31.3 billion; gains in gems, jewellery, engineering goods.
Connection to this news: India's current portfolio of six active negotiations — plus pending ratifications and concluded agreements — represents the most active phase of India's FTA diplomacy since the 1990s, directly addressing the criticism that India had become too defensive after RCEP.
India's Current FTA Portfolio: Key Agreements
India has concluded and operationalised several trade agreements in recent years, alongside the ongoing negotiations now confirmed by the Commerce Ministry.
Concluded and in force: - India-UAE CEPA (Comprehensive Economic Partnership Agreement): signed February 2022, in force May 2022 — India's most commercially significant recent FTA. - India-Australia ECTA (Economic Cooperation and Trade Agreement): interim agreement in force December 2022; full CECA negotiations ongoing (11 rounds completed). - India-EFTA TEPA (Trade and Economic Partnership Agreement): signed March 10, 2024; in force October 1, 2025. EFTA (Switzerland, Norway, Iceland, Liechtenstein) committed to promoting $100 billion in FDI to India over 15 years and facilitating 1 million direct jobs — the first investment-obligation clause in any Indian trade deal.
Concluded but awaiting ratification: - India-UK FTA: negotiations concluded; awaiting parliamentary ratification in UK after post-election delay. - India-Oman FTA: concluded; ratification pending.
Concluded negotiations, formal signing pending: - India-EU FTA, India-New Zealand FTA.
Active negotiations (confirmed March 2026): - Australia (full CECA — 11 rounds), Sri Lanka (ETCA — 14 rounds, last July 2024), Peru (FTA — 9 rounds, last November 2025), Chile (CEPA — launched April 2025, 4 rounds), Israel (FTA), plus US (ongoing), and others.
Connection to this news: The breadth of India's current FTA engagement — six active negotiations plus four agreements in ratification/finalisation stage — confirms a structural shift in India's trade policy from defensive multilateralism to proactive bilateralism.
Types of Trade Agreements: FTA, CEPA, ETCA, RCEP
- FTA (Free Trade Agreement): reduces or eliminates tariffs on goods traded between partner countries; typically covers goods only or goods + services.
- CEPA (Comprehensive Economic Partnership Agreement): broader than an FTA — covers goods, services, investment, intellectual property, and sometimes government procurement. UAE CEPA and India-EFTA TEPA are examples.
- ETCA (Economic and Technology Cooperation Agreement): the proposed India-Sri Lanka format, which adds technology cooperation and digital trade to the standard CEPA framework.
- CECA (Comprehensive Economic Cooperation Agreement): India's preferred terminology for its broadest bilateral agreements; often interchangeable with CEPA in Indian usage.
- Rules of Origin: a critical provision in all FTAs — they prevent third-country goods (e.g., Chinese goods) from being re-exported through FTA partners to access India's lower tariff rates. India's FTA design since RCEP has focused heavily on tight rules of origin to address this concern.
Connection to this news: India's current negotiations span all three types — from basic FTAs (Peru, Israel) to full CEPAs (Chile) to CECAs (Australia), with the ETCA format (Sri Lanka) representing an experimental technology-focused model. The variety reflects India's differentiated approach based on each partner's economic profile.
Key Facts & Data
- RCEP: India exited November 2019; agreement covers 15 nations, ~30% of global GDP, in force January 2022.
- India-UAE CEPA: signed February 2022, in force May 2022.
- India-Australia ECTA (interim): in force December 2022; full CECA negotiations: 11 rounds completed.
- India-EFTA TEPA: signed March 10, 2024; in force October 1, 2025; $100 billion FDI commitment + 1 million jobs over 15 years.
- India-UK FTA: negotiations concluded; awaiting ratification.
- India-Sri Lanka ETCA: 14 rounds; last round July 2024.
- India-Peru FTA: 9 rounds; last round November 2025.
- India-Chile CEPA: launched April 2025; 4 rounds completed; last round December 2025.
- Active negotiations confirmed March 2026: 6 countries (Australia, Sri Lanka, Peru, Chile, Israel + 1 more).
- Also ongoing: US, EU (concluded), New Zealand (concluded), Oman (awaiting ratification).