A free trade agreement (FTA) is a treaty between countries that reduces or removes tariffs (import duties) on most goods traded between them, while each keeps its own tariffs for outsiders. India also signs wider deals called CECA or CEPA (comprehensive economic cooperation or partnership agreements) that cover services and investment too. India's Commerce Ministry negotiates them.
Key facts
- Older India deals: Sri Lanka FTA (2000), Singapore CECA (2005), South Korea CEPA (2010), ASEAN goods (2010), Japan CEPA (2011).
- Recent deals include the UAE CEPA (2022), Australia ECTA (2022) and the EFTA TEPA (2025); agreements with the UK and the EU were signed in 2025 and 2026. (as of 23 Oct 2026)
- India walked out of the 15-nation RCEP in November 2019.
- The UAE CEPA was negotiated in 88 days, the fastest of India's trade deals.
Latest
The India-New Zealand FTA, signed on 27 April 2026 by Piyush Goyal and Todd McClay, came into force on 20 October 2026: 100 percent of Indian exports enter New Zealand duty free from day one; 57 percent of New Zealand's exports enter India tariff free, rising to 82 percent.
Why exams ask about it
Each new deal brings questions on the partner, the minister who signed, the dates and the tariff numbers.