India-UK Free Trade Agreement Set to Transform Trade Relations Soon

India-UK FTA on the Horizon

New Delhi: The India-UK free trade agreement (FTA), which was finalized in July of the previous year, is anticipated to be implemented within the next 30 to 45 days, as stated by Commerce and Industry Minister Piyush Goyal on Thursday.

During a bilateral discussion with Peter Kyle, the UK's Secretary of State for Business and Trade, on the sidelines of the recent 14th ministerial conference of the World Trade Organisation (WTO) held in Cameroon, Goyal shared this update.

He noted, "The UK is quite pleased with the rapid passage of the India-UK Free Trade Agreement through both Houses of Parliament... We are also looking at a possible entry into force of the agreement over the next 30 to 45 days," while addressing reporters.

On July 24, 2025, India and the UK signed the Comprehensive Economic and Trade Agreement (CETA), which allows 99% of Indian exports to enter the UK market duty-free, while tariffs on British goods like cars and whisky will see reductions in India.

Recent Developments in India's Trade Agreements

INDIA-OMAN FTA:

On December 18, 2025, India and Oman finalized a free trade agreement that will grant duty-free access to 98% of Indian exports, including textiles, agriculture, and leather products in Oman. In return, India will lower tariffs on Omani goods such as dates, marbles, and petrochemical products.

Goyal mentioned that he met with Pankaj Khimji, Advisor for Foreign Trade and International Cooperation from Oman, in Cameroon to discuss trade matters, with both nations aiming to implement the agreement by May 1, 2026.

INDIA-MERCOSUR TRADE PACT:

In discussions with the Brazilian Minister of Foreign Affairs, Goyal indicated that both countries are expediting talks to enhance the preferential trade agreement between Mercosur and India, which includes Brazil, Argentina, Uruguay, and Paraguay. The existing India-Mercosur PTA, effective since June 1, 2009, has limited coverage with only 450 tariff lines.

INDIA-CANADA FTA:

Goyal also met with Canadian Minister of International Trade Maninder Sandhu to discuss expanding bilateral relations. He plans to lead a significant business delegation to Canada by the end of this month or early June to participate in the Joint Committee on Trade meeting.

He emphasized the importance of expanding investment partnerships to attract more capital to India, noting that Canada complements India's economy without significant competition on critical items.

Negotiations for the Comprehensive Economic Partnership Agreement (CEPA) were launched on March 2.

INDIA-CHILE FTA:

Commerce Secretary Rajesh Agrawal reported that both nations are committed to accelerating the ongoing FTA negotiations, aiming for completion in the coming months. India and Chile have been working under a preferential trade agreement (PTA) since 2006 and are now looking to broaden its scope.

INDIA-PERU FTA:

Agrawal mentioned discussions with Peru's Vice-Minister in Cameroon, where it was acknowledged that negotiations for a trade pact had stalled due to differing expectations. The chief negotiators from both sides will work on an informal package before resuming formal negotiations.

INDIA-SACU TRADE PACT:

During a meeting with a South African minister in Cameroon, it was agreed that negotiations for a preferential trade agreement with the South African Customs Union (SACU) would commence in the coming months, with hopes of finalizing a PTA package within the current calendar year.