India’s external trade strategy is gathering pace, with multiple Free Trade Agreements (FTAs) becoming operational and more expected to come into force soon. Commerce Secretary Rajesh Agarwal said four FTAs are currently operational, while five additional agreements are likely to take effect by this year or early next year. He urged exporters to leverage these agreements to expand their global footprint.
Agarwal outlined progress under India’s Export Promotion Measures (EPMs), stating that three components had already been launched earlier, and the remaining seven have now been rolled out.
The government’s focus, he said, is to support exporters in tapping both established and emerging markets. Higher incentives are being planned for companies entering new geographies, with the aim of diversifying India’s export basket and reducing overdependence on specific regions.
He added that trade facilitation efforts are being strengthened to ensure exporters can fully utilise preferential tariff benefits under existing and upcoming FTAs.
Since 2014, the NDA government has finalised nine major trade pacts — with the European Union, the United States, Australia, the United Kingdom, Oman, New Zealand, the UAE, the European Free Trade Association (EFTA) bloc, and Mauritius.
Earlier trade arrangements include agreements with the 10-nation ASEAN bloc, Japan, South Korea, Malaysia, SAFTA, and Singapore.
The timeline of recent FTAs reflects an accelerated push:
India’s agreements with the EU and the US are among its largest and most strategically significant trade deals.
India and the United States recently announced a framework for an interim trade agreement. According to a joint statement from the White House, the US will reduce tariffs on India to 18 per cent under the interim framework. The agreement reaffirms both countries’ commitment to the broader US-India Bilateral Trade Agreement (BTA) negotiations, launched by US President Donald Trump and Prime Minister Narendra Modi on February 13, 2025. The broader BTA is expected to include additional market access commitments and measures to strengthen supply chains.
Similarly, India and the European Union concluded negotiations on a landmark free trade agreement after an 18-year gap since talks began in 2007. The deal is set to cut or eliminate duties on over 90 per cent of EU exports to India, creating a trade bloc spanning nearly 2 billion people. It marks the largest trade agreement ever concluded by both sides.
With four FTAs already operational and several more set to be implemented, India’s trade architecture is expanding rapidly. The government’s focus on export promotion, market diversification, and trade facilitation signals a clear intent to strengthen India’s position in global supply chains. For exporters, the message is clear: the opportunity lies not just in new agreements, but in effectively utilising them to gain a competitive edge in global markets.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Published on: Feb 20, 2026, 1:57 PM IST
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