India Secures Free Trade Deals with Two Muslim-Majority Countries and Others, Leaving US and Pakistan Watching

New Delhi: India and New Zealand have signed a new Free Trade Agreement (FTA), reducing tariffs on 95% of New Zealand’s goods. This historic agreement opens access to 1.4 billion Indian consumers, creating significant opportunities for New Zealand exporters while boosting India’s global trade outreach.

Under this agreement, 57% of New Zealand’s exports to India will be tariff-free from day one, rising to 82% as the agreement is fully implemented, with the remaining 13% subject to substantial tax reductions.

India’s Growing FTA Network
In the past five years, India has actively expanded its trade agreements, signing deals with seven countries: Mauritius (2021), UAE (2022), EFTA/TEPA group (2024), UK (2025), Oman (2025), and now New Zealand. These agreements complement India’s existing FTAs and CEPAs with countries including Sri Lanka, Bhutan, Thailand, Singapore, Malaysia, South Korea, Japan, Australia, UAE, Mauritius, ASEAN nations, and four European EFTA nations (Iceland, Liechtenstein, Norway, Switzerland). Negotiations are also ongoing with the US, European Union, Chile, Peru, and Israel.

India’s FTA Portfolio
To date, India has signed FTAs, Comprehensive Economic Partnership Agreements (CEPAs), and Preferential Trade Agreements (PTAs) with 17 countries and groups, including Sri Lanka, Singapore, South Korea, Japan, Malaysia, Mauritius, UAE, Australia, UK, Oman, Chile, Afghanistan, and the Mercosur bloc (Brazil, Argentina, Uruguay, Paraguay).

Key Deals: Oman and UK
India recently signed a CEPA with Oman (18 Dec 2025), eliminating tariffs on 98.08% of Indian exports to the country. This deal is particularly significant for the medical sector and will also boost exports of butter, sugar confectionery, bakery products, poultry, and related items.

With the UK, India has inked a Comprehensive Economic and Trade Agreement (CETA), providing tariff-free access for 99% of Indian exports, benefiting sectors such as textiles, leather, marine products, gemstones, engineering goods, chemicals, and auto components.

Why FTAs Matter
Free Trade Agreements reduce or eliminate customs duties between countries, facilitating easier market access. Beyond goods, FTAs simplify non-tariff barriers, promote service exports, and encourage bilateral investments.

Benefits for India
FTAs allow Indian businesses to export products without duties, expand into foreign markets, attract investment, and gain access to critical raw materials, intermediate goods, and capital equipment. Ultimately, these agreements strengthen domestic production, enhance competitiveness, and deepen India’s integration into the global economy.