Introduction: Trade Strategy in Context
The period 2025-26 represents a dynamic era for the external trade policy of India, as the nation began to adopt a paradigm shift from multilateral FTA regimes to bilateral FTA agreements with some of its most preferred partners like the UK, Oman, and New Zealand. Although the Indian government had for many years previously been somewhat hesitant about participation in the Multilateral Free Trade Agreement (MFTAs) process, India’s Government has since taken action to significantly speed up the completion of several comprehensive MFTAs; which are designed to improve: a) Export growth, b) Increase Investment, c) Facilitate the Integration of Services, d) Re-position India within the new Global Trade Framework. The trade diplomatic efforts made by India during this period are also taking place against the backdrop of broader negotiations between India and the European Union (EU), as it readjusts its relations with large trading partners such as the United States
1. India - UK Free Trade Agreement
Background and Negotiation Process
The Comprehensive Economic and Trade Agreement between India and the United Kingdom was finally inked in July 2025, ending intermittent negotiations between the two nations, symbolizing their intention to optimize their trade relations after Brexit.
Core Features
Tariff Liberalization: The FTA covers nearly 99% of tariff lines, providing unprecedented duty-free access for Indian goods such as textiles, leather, marine products, and engineering goods. Services Integration: Improved access for important services sectors in India, like IT, finance, education, and healthcare, along with provisions that enable mobility of professionals in these services.
Trade Growth Predictions: External projections forecast significant growth in bilateral trade, with ambitions to double trade volumes by the end of the decade.
Strategic Implications
Such a deal is a key plank of the Indian government’s economic policy to enhance economic ties with developed countries, move away from export dependence on developed markets such as the U.S. and EU, and offer pragmatic export opportunities for Indian MSME and services export sectors.
2. India-Oman Comprehensive Economic Partnership Agreement (CEPA)
Overview and Signing
India and Oman concluded a Comprehensive Economic Partnership Agreement (CEPA) in December 2025, symbolizing India’s strategic access to Gulf region countries, a traditional trading partner of India and an important point in energy and logistics value chains.
Critical Components
Duty-Free Market Access: Nearly 98% of India’s exports gain duty-free access to the Omani market, including textiles, precious stones, leather products, pharmaceutical products, engine parts, and other goods. India has committed to significant tariff reductions on imports from Oman.
Services and Professional Mobility: The deal liberalizes the delivery of service sectors such as logistics, healthcare, engineering, and information technology to a greater extent. There are also increased provisions for professional mobility, which allow for increased stay periods in the host country along with increased intra-company transfers of professionals.
Investment and Supply Chains: The agreement encourages investments and enhances supply chains in the region, especially with regard to renewable energy, petrochemicals, and services, to meet the overall economic outreach to West Asia on the Indian side.
Strategic Implications
The Oman CEPA signifies the Indian government’s commitment to fostering economic integration in West Asia. The Oman CEPA follows previous Gulf partnerships (such as UAE); it is important in that it helps India secure trade advantages in an increasingly integrated region.
3. India-New Zealand Free Trade Agreement (FTA)
Negotiation and Conclusion
A Free Trade Agreement was concluded in December 2025 between India and New Zealand, and in a remarkably short period of nine month the negotiations for this agreement were completed.
Highlights
Tariff Eliminations: The agreement offers zero duty access on 100% of Indian exports to New Zealand, with substantial relief in major export categories.
Market Access and Investment: New Zealand has offered an investment opportunity of approximately $20 billion over 15 years, targeting areas such as manufacturing, services, innovation, and others. Both countries aim to significantly expand bilateral trade over the next five years.
Sectoral Gains: Benefiting sectors include Textiles, Pharmaceuticals, Refined Petroleum Products, Agricultural Machinery, Information Technology Services, and MSME Exports.
Strategic Implications
Although the trade volumes were modest in bilateral trade before the signing of the FTA, the new treaty now gives Indian trade greater facilitation to a high-income Pacific Rules-based market. Another importance of the treaty for India is that it expands its diversification of exports beyond its usual trade markets.
Strategic Themes and Policy Drivers
Diversification and Risk Management
India’s 2025-26 FTA initiative manifests its strategy to diversify trade dependencies, particularly in the aftermath of tariff tensions and stalled US FTA talks.
Domestic Competitiveness and Export Orientation
These agreements have a bearing on India’s industrialization, export promotion policies, Make in India, MSME competitiveness, services exports, and involvement in global value chains. Tariff reductions enhance the competitiveness of Indian products in the international markets, and the commitments in the area of services will open up opportunities for Indian professionals.
Geopolitical and Diplomatic Aspects
In addition to the economic aspects, the FTAs enhance the geopolitical alliances of India — integrating into the Indo-Pacific trading structure through New Zealand, while consolidating relations with the UK, an important strategic partner, as well as relations with West Asia through Oman.
Challenges and Considerations
Notwithstanding these gains, India has to balance pressures for domestic restructuring, especially in agriculture, dairy protections, and sensitive industries, with the requirement not to hurt nascent sectors by undue liberalization. The exact translation of these agreements into trade and investment flows will be watched for policy refinement.
Conclusion
India’s trade strategy in 2025-26-anchored, among others, by FTAs with the UK, Oman, and New Zealand-points to a strategic shift toward active, diversified international economic engagement. These agreements have the effect of opening new markets for Indian goods and services, securing investment, deepening strategic cooperation, and embedding India fully into global trade architecture. The real effectiveness of these pacts will be realized more pragmatically as export growth, industrial competitiveness, and bilateral relations show their actual effects in the real world
Hritvik Gupta is a legal writer and researcher associated with LEGALLANDS LLP, where he contributes analytical and research-driven articles on corporate governance, international trade laws, and policy reforms. His writing reflects a deep understanding of evolving legal frameworks and their impact on cross-border commerce and regulatory compliance.
Hritvik’s work bridges practical legal insight with emerging global regulatory trends, offering readers a balanced perspective that combines academic depth with real-world application. He takes a keen interest in the intersection of law, technology, and international policy, contributing to the discourse on how businesses and governments can adapt to dynamic legal environments.
Through his contributions to Legallands.com, Hritvik aims to make complex legal developments more accessible, insightful, and relevant to businesses, professionals, and policymakers operating in an increasingly interconnected world.
