In a world still navigating the complexities of a post-COVID-19 landscape, India is strategically leveraging free trade agreements (FTAs) to redefine its geopolitical and economic standing. Recent activity indicates a clear and decisive pivot towards bilateralism, with significant trade deals either concluded or in advanced stages of negotiation with key partners like the UAE, Australia, the UK, and Oman. This flurry of activity marks a shift in India's approach to global trade, using FTAs as tools for strategic alignment, supply-chain security, and forging crucial partnerships.
The Comprehensive Economic Partnership Agreement (CEPA) between India and the UAE, finalized in early 2023, serves as a prime example of this strategy in action. This landmark agreement aims to eliminate tariffs on a substantial range of goods and services, facilitating smoother trade flows and creating enhanced market access for businesses in both countries. Bilateral trade between the two countries rose from USD 20.8 billion in fiscal year 2022 to USD 28.1 billion in fiscal year 2024, a 35% increase. Indian exports, particularly in gems and jewelry, have seen a remarkable boost.
India and Australia have also been actively working to strengthen their economic partnership. Negotiations for a Comprehensive Economic Cooperation Agreement (CECA) are ongoing, building upon an interim trade deal implemented in December 2022. The 11th Round of negotiations concluded in August 2025, covering a wide array of areas, including goods, services, digital trade, and rules of origin. The CECA aims to deepen bilateral trade in goods and services, capitalizing on the potential for closer economic ties.
The India-UK Free Trade Agreement, signed in July 2025, is described as the "biggest and most economically significant new bilateral FTA since leaving the EU". The agreement is expected to cut levies on 90% of British products sold in India, including whisky, food and electrical devices, and is projected to increase bilateral trade by $34 billion a year from 2040. Tariffs on whisky will be reduced, and India will cut automotive tariffs to 10%. The UK government estimates the FTA will increase UK GDP by 0.13% in the long run.
On December 18, 2025, India and Oman are set to sign a Free Trade Agreement, offering immense opportunities in sectors such as textiles, footwear, automobiles, and renewable energy. The agreement will give India a stronger edge in Oman's import market, especially for consumer products and light engineering goods. It is expected to boost India's industrial exports, as import duties in Oman currently range up to 100% on select products. The FTA also aligns with India's strategy to diversify trade partnerships and strengthen economic ties with West Asia.
These FTAs are not merely about expanding trade volumes; they represent a strategic realignment in a multipolar world. In a global landscape characterized by weakening multilateralism and increasing geopolitical tensions, India is using FTAs as tools for strategic engagement, supply-chain security, and diplomatic insurance. This proactive approach aims to create a more resilient and diversified economic framework, reducing dependence on traditional markets and fostering stronger relationships with key partners. By actively pursuing and implementing these trade agreements, India is positioning itself as a significant player in the evolving global order.
