India's FTAs with UK and Oman Likely Operational from April; New Zealand Deal by September
Commerce and Industry Minister Piyush Goyal announced that India's free trade agreements with the UK and Oman are expected to be operationalised in April 2026, while the pact with New Zealand may come into force by September 2026.
The India-US interim bilateral trade agreement (BTA) is also likely to be operationalised by April 2026, with reciprocal tariffs set at 18%.
India signed the Comprehensive Economic and Trade Agreement (CETA) with the UK on July 24, 2025, under which 99% of Indian exports will enter the British market at zero duty.
The India-Oman Comprehensive Economic Partnership Agreement (CEPA), signed on December 18, 2025, provides zero-duty access on over 98% of Oman's tariff lines.
India and New Zealand concluded FTA talks on December 22, 2025, targeting $20 billion in investment over 15 years and doubling bilateral trade in five years.
Types of Trade Agreements: FTA, CEPA, CETA, and BTA
Trade agreements vary in scope and depth. India uses several nomenclatures depending on the coverage and ambition of the deal. Understanding the distinctions is critical for UPSC, as specific provisions differ significantly across these categories.
The simultaneous operationalisation of a CETA (UK), CEPA (Oman), FTA (New Zealand), and BTA (US) in 2026 represents an unprecedented expansion of India's trade agreement network, covering markets across the Atlantic, the Gulf, the Indo-Pacific, and North America.
India-UK CETA: Key Provisions
The India-UK Comprehensive Economic and Trade Agreement, signed on July 24, 2025, is the UK's most economically significant bilateral FTA since Brexit and India's most comprehensive with a non-Asian trade partner. It covers 29 chapters spanning goods, services, digital trade, investment, and professional mobility.
With operationalisation expected in April 2026, the CETA will provide immediate market access benefits to Indian textile, footwear, and IT services exporters, while UK whisky and automotive imports into India will face reduced but still significant duties.
India-Oman CEPA: Key Provisions
The India-Oman Comprehensive Economic Partnership Agreement, signed on December 18, 2025, formalises economic cooperation across goods, services, and professional mobility. Oman is India's 28th largest trading partner with bilateral trade exceeding $10 billion annually.
The Oman CEPA is the second FTA India has signed with a GCC nation after the UAE CEPA, reinforcing India's economic ties with the Gulf region and supporting energy security through deeper trade integration.
- India-UK CETA signed: July 24, 2025; expected operational: April 2026
- India-Oman CEPA signed: December 18, 2025; expected operational: April 2026
- India-New Zealand FTA concluded: December 22, 2025; expected operational: September 2026
- India-US BTA: expected operational by April 2026; reciprocal tariff at 18%
- UK: 99% of Indian exports at zero duty; whisky tariff reduced from 150% to 40% over 10 years
- Oman: 98.08% of tariff lines at zero duty for India; India liberalises 77.79% of tariff lines
- New Zealand: $20 billion investment target over 15 years; aim to double bilateral trade in 5 years
- India's total FTAs signed to date: 13 RTAs/FTAs (plus new additions in 2025-26)