In recent years, India has signed trade agreements with countries such as the UK, the EU, and New Zealand, and talks are ongoing with the US regarding a potential deal. While these trade pacts have opened markets and boosted exports of micro, small, and medium enterprises (MSMEs), experts say they have also brought stiffer competition and compliance burdens. Results are uneven as some sectors gained from global value chains, while others still face cost pressures and low FTA (free trade agreement) awareness, say industry experts and stakeholders. As India signs more deals, experts want future FTAs designed to help MSMEs compete globally and at home.
Since 2021, India has signed nine FTAs covering 38 countries. The run started with Mauritius, followed by the UAE CEPA (Comprehensive Economic Partnership Agreement) in May 2022 and Australia ECTA (Economic Cooperation and Trade Agreement) in December 2022. Then India signed the EFTA TEPA on March 10, 2024, which took effect on October 1, 2025. The UK CETA was signed in July 2025 and the Oman CEPA in December 2025. New Zealand’s FTA was announced on December 22, 2025, and the EU FTA on January 27, 2026. An interim framework with the US was delivered on February 7, 2026.
