As India & New Zealand Announce Trade Deal, A Look At Six FTAs Signed Before Landmark Pact

Last Updated:December 22, 2025, 12:53 IST

An FTA is a formal agreement between countries to reduce or eliminate trade barriers such as customs duties, import quotas & restrictions on goods and services traded between them

Countries typically sign FTAs to boost exports and imports, to make goods cheaper for consumers, to attract foreign investment, and to strengthen economic and strategic ties. (Pixabay)

In a landmark deal, New Zealand and India struck a Free Trade Agreement (FTA) on Monday, making it easier for the former’s exporters to reach the world’s biggest population and an economy forecast to be worth $7 trillion by 2030.

The agreement eliminates or reduces tariffs on 95 per cent of New Zealand’s exports to India with more than half of products to be duty free on Day One of the pact, improving access to India’s rapidly expanding middle class, the New Zealand government said.

Described as ambitious and landmark, the FTA was finalised just nine months after negotiations began during New Zealand Prime Minister Christopher Luxon’s visit to India in March 2025.

According to the release, the FTA is expected to significantly deepen economic engagement, enhance market access, promote investment flows, strengthen strategic cooperation, and open new opportunities for innovators, entrepreneurs, farmers, MSMEs, students, and youth across multiple sectors.

This is India’s seventh FTA in the last few years after Oman, the UK, the EFTA countries, the UAE, Australia and Mauritius.

In the context of the historic deal, News18 looks back at the other 6 FTAs and what the concept really means:

What Is An FTA?

An FTA is a formal agreement between two or more countries to reduce or eliminate trade barriers such as customs duties, import quotas, and restrictions on goods and services traded between them.

The key features of an FTA are lower or zero tariffs on selected goods, easier market access for services and investments, rules of origin to ensure benefits apply only to member countries, and trade facilitation measures like faster customs clearance. It may include provisions on intellectual property, labour, environment, and dispute settlement.

Countries typically sign FTAs to boost exports and imports, to make goods cheaper for consumers, to attract foreign investment, and to strengthen economic and strategic ties.

What Are India’s 6 Recent FTAs Apart From NZ Signed On Monday?

1. Mauritius: February 22, 2021: This was India’s first modern Comprehensive Economic Partnership Agreement (CEPA)-style deal. This is India’s first trade deal with an African nation, boosting goods/services trade, investment, and defining rules for services like professional, financial, and tourism sectors, with Mauritius acting as India’s gateway to Africa.

2. UAE: February 18, 2022: This was the first big Gulf trade deal and became operational from May 2022. The landmark pact looks to reduce tariffs on over 90 per cent of Indian exports to the UAE (gems, textiles, agri-products) and boosting trade across goods, services, and investment, with a goal to hit $100B bilateral goods trade. It offers preferential market access, includes provisions for digital trade, and aims to create jobs, strengthening economic ties significantly.

3. Australia: April 2, 2022: The pact provides duty-free access for most goods, boosting sectors like textiles, gems, and raw materials (coal, wool), with ongoing negotiations for a more comprehensive deal (CECA) to cover more services and digital trade. The interim ECTA has already significantly increased bilateral trade and created opportunities, with Australia offering 100 per cent tariff elimination for Indian goods, while India provides phased access for Australian products, focusing on raw materials for Indian industries.

4. European Free Trade Association (EFTA): March 10, 2024: The deal covers Switzerland, Norway, Iceland and Liechtenstein. Under the agreement, EFTA has committed to invest US$100 billion in India over a 15-year period. This includes US$50 billion in the first 10 years, followed by an additional US$50 billion in the subsequent five years. The investment is expected to generate around one million direct jobs in India. This is the first time India has secured such a large-scale investment commitment as part of a free trade agreement.

5. United Kingdom: May 6, 2025: Under the agreement, both countries aim to increase annual bilateral trade by £25.5 billion (US$34.5 billion) and have committed to doubling trade to US$120 billion by 2030, with an additional US$40 billion projected by 2040. Beyond market access, the pact aims to promote professional mobility, strengthen regulatory cooperation, and boost cross-border investment. India seeks to scale up its exports and accelerate growth in key sectors, while the UK secures valuable entry into one of the fastest-growing consumer markets in the world.

6. Oman: December 18, 2025: Under the pact, Oman has offered zero-duty access on 98.08 per cent of its tariff lines, covering 99.38 per cent of India’s exports to Oman. It is also the first-ever commitment by any country on traditional medicine across all modes, opening significant opportunities for India’s Ayush and wellness sectors.

News india As India & New Zealand Announce Trade Deal, A Look At Six FTAs Signed Before Landmark Pact

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