NEW DELHI: The India–European Union Free Trade Agreement, officially announced on Tuesday, represents a significant milestone in India's trade diplomacy. This pact is notably the country's eighth such agreement since 2021, underscoring a proactive approach to global economic integration.
The 'Mother of All Deals' Finalized
European Commission President Ursula von der Leyen famously referred to this agreement as the 'mother of all deals' just days before her arrival in Delhi alongside European Council President Antonio Costa. Their visit aimed to finalize the terms, successfully bringing together the world's second-largest economy, the European Union, and the fourth-largest, India.
The FTA was concluded during the European leaders' participation in India's 77th Republic Day celebrations, where they served as chief guests. The announcement followed Republic Day, officially making the EU India's 22nd FTA partner and highlighting the strategic timing of this diplomatic achievement.
India's Eight Free Trade Agreements Since 2021
Since 2021, India has aggressively expanded its trade network through a series of bilateral and multilateral agreements. Here is a detailed overview of these eight pivotal FTAs:
Mauritius
The Mauritius–India Comprehensive Economic Cooperation and Partnership Agreement was signed on February 22, 2021, and came into effect on April 1 of the same year. This landmark pact marked India's first FTA with an African nation, fostering deeper economic ties across the Indian Ocean region.
United Arab Emirates
India's Comprehensive Economic Partnership Agreement with the UAE was signed on February 18, 2022, and implemented on May 1. Under this agreement, the UAE committed to eliminating tariffs on 97% of tariff lines, covering 99% of India's exports. In return, India offered enhanced market access by reducing or removing tariffs on 80% of UAE products.
Australia
The Economic Cooperation and Trade Agreement with Australia was signed on April 2, 2022, and became operational on December 29. This deal granted 85% of Australian goods exports to India tariff-free status by value, with plans to increase to 90% by January 1, 2026. India, in turn, secured zero-tariff access to Australian goods, boosting bilateral trade flows.
European Free Trade Association
India's FTA with four developed European nations—Iceland, Liechtenstein, Norway, and Switzerland—was formalized as the Trade and Economic Partnership Agreement. Signed on March 10, 2024, after 21 rounds of negotiations starting in 2008, it was implemented on October 1, 2025. TEPA includes a commitment of $100 billion in investments and one million direct jobs in India over 15 years.
United Kingdom
Signed on July 24 last year during Prime Minister Narendra Modi's visit to London, the Comprehensive Economic and Trade Agreement provides duty-free access to 99% of India's exports to the UK. This covers nearly 100% of the trade value, significantly enhancing economic cooperation between the two nations.
Oman
India and Oman signed their Comprehensive Economic Partnership Agreement on December 18, 2025. Under this pact, India secured 100% duty-free access in Oman across 98.08% of tariff lines, covering 99.38% of the export value, strengthening ties in the Gulf region.
New Zealand
Although yet to be signed, the India–New Zealand FTA stands out as one of India's fastest-concluded trade pacts. Negotiations began in March last year and concluded in December. It offers unprecedented duty-free access for Indian exports to New Zealand while carefully safeguarding India's sensitive sectors.
European Union
Under the newly announced FTA, Indian exports worth Rs 6.4 lakh crore are poised to gain access to 27 EU markets under a unified trade framework. The deal is expected to enhance market access for Indian products across diverse sectors, including:
- Textiles and apparel
- Engineering goods
- Pharmaceuticals and medical devices
- Electronics and chemicals
- Plastics and rubber
- Marine products
- Leather and footwear
- Gems and jewellery
- Handicrafts, tea, spices, and agri-products
While implementation is anticipated next year, Union Minister Piyush Goyal expressed optimism about rolling it out within the current calendar year, reflecting the government's urgency to capitalize on this strategic opportunity.
This series of FTAs since 2021 demonstrates India's robust engagement with global economies, positioning the country as a key player in international trade. The India-EU FTA, in particular, is set to reshape economic dynamics, offering substantial benefits for exporters and reinforcing India's growth trajectory on the world stage.
