Updates on Trade Agreements: May 2025

India-U.S. Trade Talks: A Three-Phase Strategy

India and the United States are actively engaged in trade negotiations, with India proposing a phased approach comprising three stages to finalize a comprehensive trade agreement. The urgency to reach at least the first phase of the deal stems from the looming implementation of reciprocal tariffs announced by U.S. President Donald Trump, set to come into effect in July. India aims to secure the initial phase of the agreement before these tariffs are enforced, to potentially mitigate their economic impact. The proposed phased strategy likely covers various sectors and trade issues, allowing for incremental progress while addressing complex trade dynamics between the two nations .

India-UK Free Trade Agreement: GeM Platform Upgrade

Following the recent India-UK Free Trade Agreement (FTA), the Indian government plans to upgrade its Government e-Marketplace (GeM) platform to support global tendering functionalities. This move aims to facilitate public procurement between the two countries by allowing entities from both India and the UK to participate in government tenders across borders. Currently, the GeM portal does not support such features. The planned enhancements are intended to align with the provisions of the FTA, which opens up government procurement markets on both sides. Senior officials confirmed that the upgrade is expected to be implemented within the year .

India-EFTA Trade Pact: Implementation Expected by End of 2025

The implementation process of the free trade agreement (FTA) between India and the four-nation European bloc EFTA is progressing fast and is expected to come into force before the end of this year, Commerce and Industry Minister Piyush Goyal said. The two sides signed the Trade and Economic Partnership Agreement (TEPA) on March 10, 2024. Under the pact, India has received an investment commitment of USD 100 billion in 15 years from the grouping while allowing several products such as Swiss watches, chocolates, and cut and polished diamonds at lower or zero duties. The European Free Trade Association (EFTA) members are Iceland, Liechtenstein, Norway, and Switzerland .

India-EU FTA: Progressing Towards Conclusion

India and the European Union (EU) reaffirmed their target to conclude free trade agreement negotiations by the end of 2025. As per the statement released by the Ministry of Commerce and Industry, India’s Union Minister Piyush Goyal held a key meeting with EU Commissioner for Trade and Economic Security, Maros Sefcovic, in Brussels on May 1 to discuss the progress on the FTA negotiations. Sefcovic stated that the EU “deeply” values its partnership with India and is committed to taking it to the next level by securing a commercially meaningful agreement, which opens up the markets for both goods and services. The next round of FTA discussions between India and the EU is scheduled to take place in New Delhi between May 12-26, 2025 .

India-Chile CEPA: Launch of Negotiations

India and Chile have announced the launch of trade negotiations for a Comprehensive Economic Partnership Agreement (CEPA) to enhance bilateral trade relations. The proposed agreement aims to unlock the full potential of the commercial relationship between the two sides, boosting employment, bilateral trade in goods, health and pharmaceuticals, defense and security, infrastructure, mining, and mineral resources .

India-Oman CEPA: Advancing Negotiations

As of February 2025, India and Oman are actively advancing negotiations on a Comprehensive Economic Partnership Agreement (CEPA). India’s Union Minister of Commerce and Industry visited Muscat in January 2025 to discuss the CEPA with Oman’s Minister of Commerce, Industry, and Investment Promotion. Formal CEPA negotiations commenced in November 2023, with significant progress made by January 2024 .

India-New Zealand FTA: Resumption of Talks

India and New Zealand have officially resumed negotiations for a comprehensive Free Trade Agreement (FTA) after a decade-long pause, aiming to strengthen economic ties and expand trade opportunities. The decision was announced on March 16, 2025, following a meeting between India’s Commerce and Industry Minister, Piyush Goyal, and New Zealand’s Trade Minister Todd McClay. With bilateral trade surpassing US$1 billion during April–January 2025, the renewed FTA talks are expected to open new avenues for businesses and consumers, driving mutual growth and prosperity .

India-Qatar Trade Relations: Exploring FTA

India and Qatar have set an ambitious goal to double their trade volume to $28 billion over the next five years. Discussions during the Qatari Emir's visit to New Delhi focused on enhancing cooperation in energy and exploring the possibility of a free trade agreement .

India-ASEAN Trade Agreement: Review Underway

As of February 2025, India and ASEAN are actively engaged in reviewing the ASEAN-India Trade in Goods Agreement (AITIGA), originally signed in 2009. The fifth Joint Committee meeting is scheduled to take place in February 2025, in Jakarta, Indonesia .

India-Canada CEPA: Negotiations Paused

Negotiations for the India-Canada Comprehensive Economic Partnership Agreement (CEPA) were re-launched in March 2022 during the fifth Ministerial Dialogue on Trade & Investment. However, as of September 2023, Canada has paused these talks, with both countries agreeing to decide on their resumption mutually .

India-GCC FTA: Resumption of Talks

India and the Gulf Cooperation Council (GCC) signed a Framework Agreement on Economic Cooperation in 2004 to strengthen trade ties. FTA negotiations resumed in November 2022, and by January 2025, the GCC expressed intentions to initiate formal discussions within the year. The GCC member countries are Saudi Arabia, UAE, Qatar, Kuwait, Oman, and Bahrain .

India's Engagement in Mutual Recognition Agreements

India is actively negotiating mutual recognition agreements (MRAs) with around 30 countries to streamline trade by reducing dual certifications. These agreements simplify compliance and boost trade opportunities. India has already signed MRAs with key partners like the US, South Korea, and UAE, and discussions are progressing with Japan and South Africa .

Conclusion

India's proactive approach to forging and enhancing trade agreements reflects its commitment to integrating more deeply into the global economy. These developments are poised to open new markets, attract investments, and bolster India's position in international trade. Stakeholders should stay informed and prepared to leverage the opportunities arising from these evolving trade dynamics.