Rama Krishna Sangem
India so far signed Free Trade Agreements (FTAs) with as many as 22 countries including European Union (EU) which comprises 27 countries. That means, we have FTAs with almost 48 countries. And we are in active talks with another 11 countries or regions for free trade and hope to sign them in 2026. Most import of them all is a deal with the US.
On January 27, 2026, India concluded a landmark Free Trade Agreement (FTA) with the European Union (EU), which is recognized as India’s 22nd FTA, marking a major milestone in trade expansion. This deal, alongside recent pacts with the UK, EFTA, Australia, and the UAE, aims to unlock the entire European market for Indian exporters, covering over 99% of India’s exports by trade value.
Key details regarding India’s recent trade advancements: India-EU FTA: Hailed as the “mother of all deals,” it connects the world’s 2nd and 4th largest economies. It focuses on tariff reductions for 96% of goods, excluding sensitive sectors like dairy.
Recent Momentum: Since 2021, India has aggressively pursued trade deals, including pacts with Mauritius, UAE, Australia, and the EFTA nations.
Not just trade, strategic importance too
These FTAs are not of just trade, they also offer strategic impact. These agreements are designed to reduce strategic dependencies, boost sectors like textiles, leather, and jewelry, and foster technology and capital exchange.
Key Deals: The EU is the 22nd partner, following the 2025 finalization of deals with the UK and New Zealand, and the 2024 EFTA (Iceland, Liechtenstein, Norway, Switzerland) agreement. The FTA with the EU was announced during the visit of European leaders for India’s Republic Day celebrations.
11 more FTAs in talks stage
As of early 2026, India is in active negotiations for 11 trade agreements covering 24 countries. The focus will be on finalising a deal with the US, following the conclusion of the FTA with the 27 member states of the EU in January. Though a draft deal is ready and lying on the table of President Trump in the White House, he is not signing it deliberately to bend India to his conditions. The conditions include stop buying Russian oil, downplaying its role in BRICs, keep away from China etc.
In FY2024–25, India’s goods exports to the US totalled US$86.5bn, representing 20% of its total goods exports, while the total value of bilateral goods trade with the US was US$132.1bn. Goods exports to the EU totalled US$75.9bn, or 17% of India’s total goods exports, with the total bilateral goods trade worth US$136.6bn. Hopefully there will be some momentum to the deal with the US this February. Indian Commerce Minister Piyush Goyal and US ambassador Sergio Gor are negotiating for clinching a deal at the earlist.
