• India’s 9 FTA network now spans 38 countries and is strengthening export resilience through wider market access, positioning the country in 3rd place among Global South economies in terms of trade partnership diversity, surpassing all Global North economies. 
• FTAs improve export economics by making Indian goods more competitive, trade rules more predictable, and market access more diversified.
• The biggest gains are likely in labour-intensive, manufacturing, and services sectors such as textiles, leather, engineering goods, pharmaceuticals, processed food, and skilled professional services.
• For MSMEs, FTA benefits often flow through supply chains, as larger exporters create more demand for components, packaging, fabrication, transport, and specialised services.

Between 2009 and 2026, India has concluded 9 FTAs covering 38 countries (8 since 2021), widening market access at mostly zero duties and helping export-oriented firms expand production and integrate more deeply into global value chains. This has positioned the country in the third place among Global South economies in terms of trade partnership diversity, surpassing all Global North economies. It also indicates a more diversified trade network, which gives countries greater resilience when tariff pressures rise, supply chains shift, or demand weakens in one market. 

For India, this widening network is described as a major pillar of its trade strategy. The India-EU FTA, announced in January 2026, reflects the country’s effort to deepen access to a major developed market with strong demand across manufacturing and services. In February 2026, India and the United States also released a framework for an interim trade agreement, signalling stronger momentum in bilateral trade cooperation and laying the groundwork for a broader trade arrangement.

While these newer developments signal where India’s trade partnerships are headed next, the country’s current FTA network already provides a strong base across multiple regions. These agreements span the Middle East, Oceania, Europe, Africa, and East Asia, opening new export channels for Indian industries, strengthening supply chains, and supporting long-term manufacturing growth.

1. India-EU Free Trade Agreement
The India-EU FTA, announced in January 2026, represents an important strategic development because it connects India with one of the world’s largest and most regulated markets. For Indian exporters, the agreement has the potential to improve access for both goods and services while strengthening India’s position in advanced manufacturing and value-added exports. It also signals India’s intent to deepen trade ties with major developed economies.

2. India-Oman Comprehensive Economic Partnership Agreement (CEPA)
India signed a Comprehensive Economic Partnership Agreement with Oman in December 2025, marking a significant step in strengthening economic engagement with the Gulf region. The agreement opens new export opportunities for labour-intensive sectors such as agriculture, textiles, leather, gems and jewellery, engineering, pharmaceuticals, and automobiles, supporting job creation and strengthening the role of artisans, women-led enterprises, and MSMEs. It grants zero-duty access on 98.08% of Oman’s tariff lines, which together account for 99.38% of India’s exports by value.

3. India-UK Comprehensive Economic and Trade Agreement (CETA)
India and the United Kingdom signed the CETA in 2025, marking a major step in a long-standing economic relationship. The agreement gives duty-free access to nearly 99% of India’s exports to the UK, covering almost the full trade value. It is expected to benefit sectors such as textiles, leather, marine products, gems and jewellery, engineering goods, chemicals, and auto components. It also includes social security relief that is expected to reduce costs for Indian firms and professionals working in the UK.

4. India-New Zealand Free Trade Agreement
Concluded in 2025, the India-New Zealand FTA is one of India’s fastest-concluded trade agreements. It provides zero-duty access for all Indian exports from the date of entry into force, creating opportunities for sectors such as textiles, apparel, leather, footwear, gems and jewellery, engineering goods, and processed foods. The agreement is also backed by a USD 20 billion investment commitment over 15 years and is expected to support farmers, MSMEs, and skilled professionals.

5. India-European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA)
India signed the EFTA TEPA in 2024, and it entered into force in October 2025. This agreement stands out because it links trade with investment and employment outcomes. EFTA countries have offered market access covering 92.2% of tariff lines, accounting for 99.6% of India’s exports, while also committing to increasing FDI into India by USD 100 billion over 15 years, with an expected 1 million direct jobs.

6. India-Australia Economic Cooperation and Trade Agreement (ECTA)
Signed in April 2022, the agreement marked India’s first trade agreement with a developed economy in more than a decade. It provides Indian exports with zero-duty access across 100% of Australian tariff lines from January 2026 and has supported stronger export growth in sectors such as textiles, chemicals, pharmaceuticals, plastics, gems and jewellery, and agricultural products.

7. India-UAE Comprehensive Economic Partnership Agreement (CEPA)
India signed the India-UAE CEPA in 2022, marking its first major trade agreement in the Middle East and North Africa region. The agreement has strengthened bilateral trade and created fresh export opportunities across sectors such as engineering goods, chemicals, electronics, and smartphones. 

8. India-Mauritius Comprehensive Economic Cooperation and Partnership Agreement (CECPA)
The India-Mauritius CECPA, signed in 2021, was India’s first trade agreement with an African country. It provides preferential access for over 300 Indian export products, including agricultural goods, textiles, base metals, electrical items, chemicals, and wood products. The agreement also opens opportunities for Indian service providers across a wide range of sectors.

9. India-South Korea Comprehensive Economic Partnership Agreement (CEPA)
India’s trade partnership with South Korea continues through the upgraded CEPA framework, reflecting the importance of East Asia in India’s trade strategy. The agreement supports cooperation across manufacturing and industrial sectors and remains relevant for sectors such as auto components, engineering goods, electronics, and chemicals, where stronger value-chain integration matters.

FTAs’ Effect on the Economics of Exports

FTAs do more than open new markets; they change how Indian exporters price, plan, and protect their business across geographies. Here’s how they help

1. Lower tariffs improve price competitiveness: The most immediate impact of an FTA is lower or zero import duty in partner markets, which makes Indian goods more competitive on price. Even a small tariff advantage can help exporters improve landed cost, protect margins, and win orders against suppliers from other countries.
2. Clearer trade rules make exports more predictable: FTAs often improve customs procedures, origin requirements, and regulatory coordination, making cross-border trade more stable and easier to plan. This helps exporters manage production schedules, negotiate with buyers more confidently, and build repeat business rather than relying on occasional orders.
3. Wider market access reduces export risk: FTAs also help exporters diversify across multiple markets, reducing dependence on any one geography. If demand weakens or tariff conditions change in one market, businesses with access to several FTA-linked countries are better placed to shift volumes and maintain export momentum.

Sectors that Stand to Gain the Most

Several sectors are likely to benefit the most as FTAs improve tariff access, expand market reach, and support stronger trade flows.

• Labour-intensive and manufacturing sectors
  Textiles and apparel, leather, footwear, gems and jewellery, engineering goods, auto components, processed food, pharmaceuticals, chemicals, and agriculture-linked exports are among the biggest gainers. These sectors are well placed because tariff cuts can quickly improve competitiveness, and India already has strong production and supplier bases in many of them.
• Product exports gaining momentum
  The UAE agreement has supported growth beyond traditional export categories, with gains in electrical machinery, chemicals, and smartphones. Australia is also emerging as a stronger market for manufacturing goods, pharmaceuticals, gems and jewellery, and agricultural exports such as fruits, vegetables, marine products, spices, and coffee.
• Services and professional mobility
  Several newer agreements also support services and skilled professionals. Oman has opened commitments across temporary entry categories, the UK agreement supports mobility in IT, healthcare, finance, and education, and New Zealand has created opportunities in areas such as engineering, healthcare, yoga, culinary services, and music instruction.

Importance of FTAs for MSME Supply Chains

The biggest FTA opportunity often sits one layer below the final exporter. When a large exporter receives improved market access, production has to rise, creating demand for components, intermediate goods, fabrication work, packaging, finishing, warehousing, transport, testing, and specialized services. In other words, FTAs can expand the business available to MSME suppliers even when they are not directly exporting.

This is especially relevant in sectors such as textiles, machinery parts, auto components, processed food, chemicals, and gems and jewellery, where Indian exports depend on dense supplier ecosystems. Many of these ecosystems are driven by smaller manufacturers located in Tier-2 and Tier-3 regions. 

FTAs and India’s Manufacturing Ambition

Global companies look for countries that offer scale, policy stability, market access, and trustworthy supply chains. FTAs strengthen all four. They make India more attractive not only as a market, but also as a production base connected to multiple trade corridors. That is why agreements such as TEPA are significant. By tying trade to long-term investment and job creation, they push India toward a model in which trade policy supports domestic manufacturing capacity. 

Trade Agreements as Long-Term Export Infrastructure

Trade agreements create opportunities, but businesses can benefit fully only when domestic systems make exporting easier, faster, and more reliable. That is where the government’s broader export support framework becomes important, especially for MSMEs, first-time exporters, and labour-intensive sectors.

• The Export Promotion Mission, approved with an outlay of ₹25,060 crore for FY 2025-26 to FY 2030-31, aims to strengthen export competitiveness through measures such as export factoring, e-commerce export credit, compliance support, and overseas warehousing. 
• The tariff explorer on the Trade Connect ePlatform helps exporters identify tariff concessions available under different FTAs and preferential trade arrangements.
• RBI-linked relief measures and recent policy changes include longer timelines for realisation and repatriation of export proceeds, extension of export credit tenor, removal of the ₹10 lakh value cap on courier exports, expanded duty-free input support for select export sectors, and direct clearance of electronically sealed export cargo from factory premises to the ship.

India’s current FTA phase is no longer only about market access but also about building a wider, more diversified trade system. That broader value makes these agreements significant beyond tariff cuts. For MSMEs and manufacturers, FTAs influence buyer demand, supplier opportunities, pricing, compliance requirements, and financing needs. Businesses that improve quality systems, documentation, working capital planning, and sector-specific certifications are likely to be better placed when export-linked demand begins to move through supply chains.