India deepens global trade ties with the UK, New Zealand and Oman.
India’s trade diplomacy marked a significant stride in 2025–26 with the signing and conclusion of three landmark trade agreements – the India–UK Comprehensive Economic and Trade Agreement (CETA), the India–New Zealand Free Trade Agreement (FTA), and the India–Oman Comprehensive Economic Partnership Agreement (CEPA) – consolidating India’s economic engagement with key global partners. These agreements are expected to unlock new avenues for trade, investment, service mobility and economic cooperation across multiple sectors.
Strengthening long-standing partnerships
The India–UK CETA, signed in July 2025, represents one of the most comprehensive bilateral trade pacts India has concluded with a major OECD economy. Covering nearly 99 % of tariff lines, it provides unprecedented duty-free access for Indian goods such as textiles, leather, marine products and engineering goods into the UK market, while streamlining the movement of professionals and creating cost savings for Indian businesses operating there.
Similarly, India and New Zealand concluded their FTA in December 2025, one of India’s fastest-negotiated trade agreements, offering zero duty access on 100 % of Indian exports to New Zealand, accompanied by an estimated USD 20 billion investment commitment over 15 years. The pact also incorporates provisions for services trade, student mobility, and agricultural cooperation that stand to benefit Indian exporters and professionals alike.
Most recently, India and Oman signed a Comprehensive Economic Partnership Agreement in late 2025, further expanding India’s footprint in the Gulf region. According to official government sources, the India–Oman CEPA will enhance market access by reducing tariffs on a vast majority of trade lines, strengthen investment ties, and facilitate deeper cooperation across goods, services and professional mobility, benefiting sectors from manufacturing to services and export-oriented small and medium enterprises.
Broad-based opportunities for Indian businesses
Collectively, these agreements mark a new phase in India’s global trade strategy, offering expanded export opportunities while safeguarding core national interests:
Tariff elimination and market access
With near-comprehensive duty-free entry into markets like the UK and New Zealand, Indian exporters, particularly in labour-intensive sectors, are positioned to improve competitiveness and scale into new regions.
Services and mobility
The CETA includes deeper market access for IT, professional services, healthcare and education, along with structured frameworks for the movement of Indian professionals.
Investment and economic cooperation
New investment commitments, such as the New Zealand USD 20 billion pledge, and enhanced CEPA mechanisms with Oman are expected to foster long-term economic linkages and support bilateral business growth.
Strategic implications
Economists view these agreements as emblematic of India’s evolving trade strategy, balancing market access with regulatory safeguards and broader economic cooperation. For businesses, especially exporters and industry associations, the success will depend on early alignment with rules of origin, quality standards and certification requirements to fully leverage potential benefits.
The service-oriented elements and mobility provisions are poised to benefit India’s substantial talent pool and service providers, while bilateral investment protections under these pacts may encourage more foreign participation in sectors such as manufacturing, infrastructure, and technology.
Looking ahead
As these agreements move toward implementation, businesses in India and partner countries are gearing up for the phased entry of tariff and non-tariff provisions. Indian firms, especially small and medium enterprises (MSMEs), are presented with an opportune moment to diversify export destinations and integrate into global value chains.
With large frameworks for trade facilitation, services expansion and investment cooperation, these agreements collectively underscore India’s commitment to strengthening economic diplomacy, enhancing export competitiveness and fostering inclusive growth in a rapidly evolving global trade environment.
