What Happened
- India is set to operationalise multiple major free trade agreements in 2026, marking one of the most active periods in the country's trade diplomacy history.
- The India-UK Comprehensive Economic and Trade Agreement (CETA), signed July 24, 2025, is expected to enter into force in May 2026; 99% of Indian exports will access the UK market at zero duty.
- The India-Oman Comprehensive Economic Partnership Agreement (CEPA), signed December 18, 2025, is slated for entry into force by June 1, 2026; approximately 98% of Indian exports gain duty-free access to Oman.
- The India-New Zealand FTA, announced December 22, 2025, is anticipated to come into force by April-September 2026, with a goal to double bilateral trade within five years.
- The India-EU FTA, with negotiations concluded in principle on January 27, 2026, is targeted to be signed this calendar year, establishing one of the world's largest free trade zones covering nearly two billion consumers.
- India-US interim trade negotiations are also active, with talks resuming April 20, 2026 in Washington.
- This represents a strategic pivot from India's 2020 withdrawal from RCEP — signalling a preference for bilateral, "targeted" agreements over large multilateral frameworks.
Static Topic Bridges
India's FTA History and Post-RCEP Strategy
India's approach to free trade agreements has undergone a significant evolution. After aggressively pursuing multilateral frameworks in the 2000s (ASEAN, SAFTA), India pulled back following concerns about import surges and then formally withdrew from RCEP in November 2019.
- India's major existing FTAs/CEPAs: India-Singapore CECA (2005), India-ASEAN FTA (goods: 2010, services: 2012), India-South Korea CEPA (2010), India-Japan CEPA (2011), India-Malaysia CEPA (2011), India-UAE CEPA (entered force May 2022), India-Australia ECTA (entered force December 2022).
- India withdrew from RCEP (Regional Comprehensive Economic Partnership) in November 2019, citing concerns about Chinese import surge risk, asymmetric market access, and threat to dairy/agricultural sectors.
- Since 2022, under commerce ministry leadership, India has pursued selective bilateral deals focused on major export markets and strategic partners.
- Agreements are negotiated by the Department of Commerce (Ministry of Commerce and Industry), but require inter-ministerial consultation involving Finance, Agriculture, Textiles, MSME, and others.
- FTAs involve a negative list (sectors excluded from liberalisation) and phase-out schedules (gradual tariff reduction over agreed timelines).
Connection to this news: The 2026 FTA calendar represents a culmination of the post-RCEP bilateral pivot — with major developed-economy deals (UK, EU) and strategic Gulf/Pacific deals (Oman, New Zealand) entering force nearly simultaneously.
India-UK CETA: Key Terms and Strategic Importance
The India-UK deal, signed after over three years of negotiations, is India's first comprehensive trade agreement with a G7 country (after the Australia ECTA).
- Signed: July 24, 2025; expected entry into force: May 2026.
- Zero-duty access for 99% of Indian exports to the UK market.
- India will gradually reduce tariffs on UK Scotch whisky, automobiles, and other manufactured goods.
- Bilateral trade target: USD 112 billion by 2030 (up from ~USD 36 billion in FY 2022-23).
- Key sectors benefiting India: textiles, garments, pharmaceuticals, IT services, engineering goods, food products, leather.
- The agreement follows the UK's departure from the EU (Brexit), making it a standalone bilateral deal.
- A significant non-tariff gain: improved mobility provisions for Indian professionals and students in the UK.
Connection to this news: As the most high-profile agreement in India's 2026 FTA calendar, the UK CETA signals India's readiness to engage on terms involving domestic tariff liberalisation in exchange for improved access to large, developed-country markets.
India-Oman CEPA and Gulf Strategy
Oman is a significant trade partner in the Gulf Cooperation Council (GCC) region, and the CEPA deepens India's economic engagement with West Asia.
- India-Oman CEPA signed December 18, 2025; targeted entry into force June 1, 2026.
- ~98% of Indian exports gain duty-free access to the Omani market.
- Oman is a member of the Gulf Cooperation Council (GCC); India is also in GCC-wide FTA negotiations (separate track).
- Bilateral trade between India and Oman: approximately USD 12-15 billion; Oman is a source of crude oil and LNG for India.
- The deal is strategically important given India's West Asia corridor interests (India-Middle East-Europe Economic Corridor, IMEEC).
- India had previously signed the UAE-CEPA (entered force May 2022) as the first such bilateral Gulf agreement.
Connection to this news: The Oman CEPA is part of the broader India-Gulf engagement, arriving alongside disruptions from the West Asia conflict that have underscored the strategic importance of diversified, resilient trade routes in the region.
Key Facts & Data
- India-UK CETA: signed July 24, 2025; force in May 2026; 99% Indian exports at zero UK duty; bilateral trade target USD 112 billion by 2030
- India-Oman CEPA: signed December 18, 2025; force by June 1, 2026; ~98% Indian exports duty-free in Oman
- India-New Zealand FTA: announced December 22, 2025; bilateral trade doubling target
- India-EU FTA: concluded January 27, 2026; ~2 billion consumers combined market; ~99% of India's export value to EU covered
- India withdrew from RCEP: November 2019
- India-UAE CEPA: entered force May 2022 (first post-RCEP major deal)
- India-Australia ECTA: entered force December 2022
- FTA negotiating body: Department of Commerce, Ministry of Commerce and Industry