Global Expansion Guide 2026
India’s Free Trade Agreements:
India’s Free Trade Agreements:
Zero Tariffs, Global Reach
Between 2025 and 2026, the global trade landscape fundamentally shifted. With historic new treaties signed with the US, EU, and UK, discover how your business can leverage zero-duty access to the world’s largest markets.
EoB
Export & Trade Law Experts
Curated by the EaseOfBiz Trade Advisory Team
Curated by the EaseOfBiz Trade Advisory Team
The 2025-2026 Mega-Deals
For decades, treaties with the West stalled over complex intellectual property and labor demands. However, strategic realignments have resulted in three historic breakthroughs, permanently altering India’s export potential.
🇮🇳 🤝 🇪🇺
India – European Union
“The Mother of All Deals”
Status
Concluded (Jan 27, 2026)
Tariffs Eliminated
99.5% of Indian Exports
Market Creation
2 Billion People
Breakthrough Details
Concluded on January 27, 2026, after 20 years of negotiations, this FTA unites the world’s second and fourth-largest economies. It drops EU import duties to 0% on 99.5% of Indian goods immediately, saving European and Indian businesses an estimated €4 billion annually in duties.
To secure this massive market access, India agreed to gradually lower its highly protective import duties on European luxury cars (down to 40%), wines, and spirits. It also opens up the Indian market to advanced European optical and medical machinery at zero duty.
🇮🇳 🤝 🇺🇸
India – United States
Historic Interim Trade Agreement
Status
Framework Finalized (Feb 2026)
US Reciprocal Tariff
Reduced to 18%
Strategic Focus
Supply Chain Resilience
Breakthrough Details
Previously, Indian exports faced punitive US reciprocal tariffs (peaking around 50%). Under the February 2026 framework, the US removed the punitive elements and slashed the baseline reciprocal tariff down to 18%, instantly restoring the competitiveness of Indian textiles, chemicals, and pharmaceuticals.
This deal represents a massive geopolitical energy pivot. India has committed to drastically reducing reliance on Russian oil and intends to purchase over $500 billion worth of American energy (LNG, coal), and advanced technology products over the coming years.
🇮🇳 🤝 🇬🇧
India – United Kingdom
Comprehensive Economic & Trade (CETA)
Status
Signed (July 2025) | Live April 2026
Tariffs Eliminated
99% of Indian Exports
Trade Goal
$56 Billion by 2030
Breakthrough Details
The UK FTA is highly advantageous for India’s service sector. It introduces a Double Contribution Convention, exempting Indian professionals on short-term UK assignments from dual social security taxes. It also secures dedicated mobility visas for Indian IT engineers, architects, and nurses.
Labor-intensive Indian industries like processed food (previously facing 70% duties), textiles, and leather immediately gain zero-duty access to the UK. Conversely, India significantly slashed import duties on British automobiles and Scotch whisky.
The Strategic Corridors
These active agreements are the foundational pillars of India’s current manufacturing and export strength across the Middle East and Asia-Pacific.
🇮🇳 🤝 🇦🇪
India – UAE
Comprehensive Economic Partnership (CEPA)
Status
Active (Since May 2022)
Tariffs Eliminated
90% Immediate Zero Duty
Industry Deep-Dive
The UAE acts as a massive redistribution hub for Africa and Europe. By dropping the 5% import duty on Indian gems, jewelry, and textiles to zero, Indian products dominate the Dubai marketplace against global competitors.
🇮🇳 🤝 🇰🇷
India – South Korea
Comprehensive Economic Partnership (CEPA)
Status
Active (Since 2010)
Current Status
Under Upgrade Negotiations
Industry Deep-Dive
This historic pact paved the way for massive South Korean investments. Brands like Hyundai, Kia, and Samsung rely on this treaty to import specialized components into India at lower tariffs, assemble them locally, and sell to the massive Indian consumer base.
🇮🇳 🤝 🇦🇺
India – Australia
Economic Cooperation & Trade (ECTA)
Status
Active (Since Dec 2022)
Tariffs Eliminated
96.4% of Indian Exports
Industry Deep-Dive
Australia eliminates duties on 85% of its exports to India—primarily raw materials like coal and minerals. Indian manufacturers get cheaper raw materials, process them domestically, and then export finished goods back to Australia at zero duty.
🇮🇳 🤝 🇨🇭🇳🇴🇮🇸🇱🇮
India – EFTA
Trade & Economic Partnership (TEPA)
(Switzerland, Norway, Iceland, Liechtenstein)
Status
Active (Effective Oct 2025)
FDI Commitment
$100 Billion (over 15 Yrs)
Industry Deep-Dive
It is the first time an FTA legally binds a bloc of developed European nations to a specific Foreign Direct Investment target ($100B) in India. Switzerland gains zero-duty access for precision tech into India, while Indian generic pharma gains streamlined regulatory access to Europe.
How to Actually Claim Zero-Duty Benefits
An FTA doesn’t automatically make your exports duty-free. You must prove legal compliance to customs authorities. Here is the operational reality.
The Legal Requirements
1
Import Export Code (IEC)
Before you can trade internationally, your business must hold a valid 10-digit IEC issued by the DGFT. It is linked directly to your PAN.
2
Rules of Origin (RoO) Compliance
You must prove your product wasn’t just imported from China and re-packaged. FTAs require a minimum “Value Addition” (usually 30-40%) to happen physically within India.
3
Certificate of Origin (CoO)
For every shipment, you must apply for a specific CoO on the Common Digital Platform. This document is presented to customs in the destination country to waive the duty.
The EaseOfBiz Solution
Navigating DGFT portals, understanding HSN codes, and calculating value-addition percentages is a bureaucratic nightmare for new exporters. We do it for you.
- 🏢 Company Incorporation: We set up your Private Limited Company or LLP to make you legally export-ready.
- 📄 IEC & GST Registration: We process your Import Export Code and GST simultaneously.
- 📜 CoO Procurement: Don’t let your shipment get stuck at customs. We handle the Certificate of Origin documentation.
Zero Friction. Minimal Cost.
You focus on acquiring global buyers. We handle the red tape.
You focus on acquiring global buyers. We handle the red tape.
The B-READY Score Simulator
The World Bank replaced the old “Doing Business” index with the B-READY framework. Adjust the pillars below to see how a country’s business readiness is assessed.
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Overall Readiness
Calculated Average of Pillars
Exhaustive FAQ
Everything you need to know about navigating the business and trade climate in 2026.
Finalized in February 2026, this framework reduces US reciprocal tariffs on Indian goods from punitive highs down to 18%. In exchange, India will reduce tariffs on US industrial goods and pivot its energy and tech procurement significantly toward the United States, representing a historic strategic alignment.
Concluded on January 27, 2026, and dubbed the ‘Mother of all deals,’ this historic pact eliminates tariffs on 99.5% of Indian exports to the European Union. It creates a unified market of 2 billion people, heavily benefiting Indian textiles, leather, and engineering sectors, while India lowers duties on European automobiles and machinery.
Signed in July 2025 and rolling out in April 2026, the Comprehensive Economic and Trade Agreement (CETA) allows 99% of Indian exports to enter the UK at zero duty. It also facilitates crucial mobility visas for Indian IT professionals and healthcare workers, while providing UK scotch whisky and cars easier access to India.
Signed with Switzerland, Norway, Iceland, and Liechtenstein, this landmark agreement secures a legally binding $100 billion foreign direct investment commitment into India over 15 years, targeting 1 million direct jobs in exchange for tariff reductions on European machinery.
Active since 2010, this agreement eliminated tariffs on 75% of Indian exports to Korea. It is the foundation for major Korean electronics and automotive firms (like Samsung and Hyundai) manufacturing in India. It is currently under negotiation for an upgrade.
Rules of Origin determine the true national source of a product. To claim zero-duty benefits, your product must have substantial ‘value addition’ physically within India, preventing third-party countries from routing cheap goods through India to bypass tariffs.
You must first hold a valid Import Export Code (IEC). Then, you must apply for a specific ‘Certificate of Origin’ (CoO) through the DGFT portal for your shipment, legally proving the goods were manufactured in India. Platforms like EaseOfBiz offer ‘Done-For-You’ services to handle this paperwork.
In 2021, the World Bank discontinued the legacy index following an independent investigation that revealed data irregularities and ethical breaches in the 2018-2020 reports. It has since been replaced by the more transparent, data-driven B-READY framework.